RoDTEP
Taxes embedded in primary input steel not factored in RoDTEP rates: EEPC India
While it is a relief that the Remission of Duties and Taxes on Exported Products (RoDTEP) rates have been announced, the rates have not taken into account the taxes embedded in their raw-material like steel in the engineering products in a large number of cases, according to EEPC India.
This is evident from the fact that the rates of major steel items and products made of steel have not been announced, said EEPC India Chairman Mahesh Desai.
He noted that RoDTEP rates, therefore, only partially compensate for the un-rebated taxes while a huge portion of the taxes on the raw-material stage will be exported abroad.
"The reimbursement of embedded duty in export items was much needed as it will help the exporters to secure more orders from overseas. Given that the world market has almost re-opened to great extent, the engineering goods sector needs full policy support to achieve its target of US$107 billion set for FY22," Mr Desai said.
The EEPC India Chairman noted that many MSMEs exporters like those in castings, fasteners, flanges etc. have not been considered for RoDTEP.
"We request the Government to relook at the rates and give full rebate on the taxes that still remain in the export production chain," he said.
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