Govt looks to limit RoDTEP spends
May 12, 2021
Capping refunds, limiting eligible sectors could ease budget constraints
The Centre is examining options such as putting a cap on the refund amount for individual exporters and limiting the number of items eligible for refunds to stay within the limited budget sanctioned for the Remission of Duties and Taxes on Export Products (RoDTEP) scheme implemented from January 1 2021, according to sources.
Exporters, however, want the RoDTEP rates, recommended by the GK Pillai committee appointed by the government last year, to be implemented fully for all relevant sectors.
“The Revenue Department and the Commerce Department are finding it difficult to take a final call on RoDTEP rates for exporters who are waiting for it for over four months. This is because there is a big gap between the outlay required for rates proposed by the Pillai Committee and the available money. The government is weighing options such as putting a cap on the reimb
Synopsis
“Exporters may be allowed to file the claim so as to verify the value of the tax-free bond to be given to them, which can be encashed after 3 years, by which time the government revenue would be on sound footing,” FIEO said in a letter to the finance ministry.
Getty Images
Exporters have proposed the government to issue tax-free bonds in lieu of pending refunds under the Merchandise Export from India Scheme, in the wake of the country’s poor revenue realisation. The Federation of Indian Export Organisations (FIEO) has proposed a mechanism of tax-free bond attracting 6% annual interest with a three-year lock-in period to provide certainty of refund and ensure liquidity for exporters.
Interest equalisation scheme for exporters likely to be extended
February 11, 2021
Mending needed Policymakers must redesign the Interest Equalisation Scheme to make it more effective S.SIVA SARAVANAN
Mending needed Policymakers must redesign the Interest Equalisation Scheme to make it more effective S.SIVA SARAVANAN×
₹1,900-crore budgetary provisionleads to hope among exporters The government is likely to extend the interest equalisation scheme for exporters, which is to lapse on March 31, 2021, by at least another year, to help them deal better with the disruptions caused by the Covid-19 pandemic.
“The interest equalisation scheme was announced for a period of five years in the Foreign Trade Policy (2015-20). Its validity was extended by a year last fiscal as the government deferred the announcement of a new five-year Foreign Trade Policy due to the pandemic. It is likely that the government would extend the scheme at least by a year as exporters need continued support
How Entrepreneurial Intelligence Helps You Face a Crisis
How Entrepreneurial Intelligence Helps You Face a Crisis
Uniting entrepreneurship with emotional intelligence can be one of the ways we can create better normal futures, alleviating tensions and concerns of the present.
Geraldo Campos
FacebookTwitterEmail
There has never been so much talk about entrepreneurship as in recent months. Even the Silicon Valley effect, a precursor to the global startup movement and open innovation, was small for the size of the Brazilian numbers in this pandemic period.
Brazil, from where I am writing this text, is already the second country in the world with the highest number of COVID-19 cases, only surpassed by the United States. In less than six months, more than 716,000 companies closed their doors. However, in the last four months, more than 580,000 new MEIs (individual microentrepreneurs, a figure created through a government program that allows the registration of companies in a more si
Synopsis
Stakeholders from the textile sector, which remains one of the country’s key foreign exchange earning sectors, have also given thumbs up to the budget.
Getty Images
Besides big players, the country’s MSME exporting firms have also welcomed the measures announced in the budget.
For Indian exporters who have been sailing against the rough tides for quite some time now, the Budget 2021 remains a mixed bag.
While the country’s exporting community hailed the specific policy measures to uplift business sentiments, it also flags missing gaps that needed speedy redressal.
It s noteworthy that India’s share in global merchandise exports currently stands at a paltry 1.67%. The industry body Confederation of Indian Industry (CII) in its Pre-Budget Memorandum 2021-22 had advocated the need for raising it to 5%. However, to achieve this ambitious target, the country certainly needs to improve its infrastructure and enhance its capacity utilisation.