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EPCH urges Indian govt to review RoDTEP export promotion scheme rates

Sep '21
Pic: Shutterstock
Pic: Shutterstock
India’s Export Promotion Council for Handicrafts (EPCH) recently urged the government to reconsider the rates of tax refunds under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme as it is only around 0.7 per cent for various products now. EPCH chairman Rajkumar Malhotra met finance minister Nirmala Sitahraman to discuss the matter.

The other points flagged by him in the meeting include restoration of duty-free import of essential embellishment, trimmings and tools for handicrafts sector; and a relook at the rates of remission of duties and risky exporters.

He said the provision of duty-free import has helped handicrafts exporters to import items for embellishing their goods like lighting, lamps, fashion jewellery, and wooden handicrafts.

About risky exporters, the council has sought help from the Directorate General of Analytics and Risk Management (DGARM) to facilitate exporters in getting their goods and services tax refunds, a news agency reported. During 2020-21, India’s handicraft exports stood at ₹25,679.98 crore ($3.5 billion).

The government has set aside ₹12,454 crore for refunds under the RoDTEP scheme for this fiscal. Under the scheme, various central and state duties, taxes and levies imposed on input products, among others, would be refunded to exporters.

The tax refund rates range from 0.5 per cent to 4.3 per cent for various sectors. The scheme replaced the Merchandise Export from India Scheme (MEIS), which ended last December.

Fibre2Fashion News Desk (DS)

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