Garments, made-ups sectors may get lower duty reimbursement under RoDTEP scheme
February 17, 2021
Budget constraints will limit refunds
Input duty reimbursement for exporters of garments and made-ups under the new RoDTEP scheme may be lower than the rates under the previous RoSCTL scheme if the government finds it difficult to meet the needs of all other entitled sectors with the available resources, officials said.
Last year, the Textiles Ministry had extended the Rebate of State and Central Taxes and Levies (RoSCTL) on export of garments and made-ups, which offers reimbursement of input taxes at 6 per cent or more of the exported value, till a time the Remission of Duties and Taxes on Exported Products (RoDTEP) was implemented. It was said that the rates were likely to remain the same under RoDTEP.
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
Exporters of engineering goods have sought multiple intervention from the Centre in the upcoming Union budget in the wake of a steep rise in the input cost of steel, ocean freight and non receipt of various incentives.
The exporters claim India could lose its market for engineering items to other countries of the southeastern region unless the government makes the available steel cheaper or releases funds which are part of the incentive scheme.
“Exporters have not been able to apply for MEIS (Merchandise Export from India Scheme) licences for exports done from April to December 31. This delay has caused huge cash flow problems, especially for MSME exporters, as they had factored in the amount at the time of quoting. The government should immediately issue MEIS to give relief,” Sanjay Budhia, managing director of Patton, one of the leading exporters out of Bengal, said.
Updated Jan 28, 2021 | 13:38 IST
RCCI that represents the business and industry of Saurashtra region wrote to the finance ministry requesting to release incentives due since April last year. Rajkot Chamber of Commerce asks for exporters money stuck under MEIS | Photo Credit: BCCL
Rajkot: Rs 900 crore owed by Saurashtra’s exporters is stuck under the MEIS. The Merchandise Export from India Scheme for exporters ended on December 31 but they are still waiting to get the benefits under the scheme.
Rajkot Chamber of Commerce and Industry that represents the business and industry of Saurashtra region wrote to the finance ministry requesting to release incentives due since April last year. Rs 900 crore is stuck under this scheme, according to RCCI.