: RoDTEP rates to give predictability, stability & liquidity to Indian Exports: FIEO #FinanceIndia #StockMarketNEWS RoDTEP rates to give predictability, stability & liquidity to Indian Exports: FIEO

@StockMarketNEWS Fri 20 Aug, 2021

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RoDTEP rates to give predictability, stability & liquidity to Indian Exports: FIEO #FinanceIndia #StockMarketNEWS
RoDTEP rates to give predictability, stability & liquidity to Indian Exports: FIEO New Delhi, Aug 18 (KNN) The announcement of Remission of Duties and Taxes on Exported Products (RoDTEP) will help in easing the liquidity of the exporters, ensuring predictability and stability thus helping competitiveness of exports over a long-time horizon, said Dr A Sakthivel, President, FIEO.

Welcoming the announcement of much-awaited RoDTEP rates for the merchandise sector on Tuesday, Federation of Indian Export Organisations (FIEO) President said the commerce ministry should quickly upload the rates in the system so that exporters can generate their scrips instantly for utilising the benefits under the scheme.

The RoDTEP rates, which provide zero rebating of exports, are WTO compatible and thus will continue for a long time until all the products & services are brought within the ambit of GST and embedded incidence is completely neutralized. The RoDTEP coupled with GST refund and Duty Drawback ensure that our export products do not contain any incidence of taxes and duties, he added.

Hailing the decision of the government to extend the RoDTEP coverage to Advance Authorisation/DFIA holders, EOU and SEZ units from a date to be notified later, President FIEO urged the government to also extend them the benefits from 1st January, 2021.

He also pleaded for coverage of various sectors such as Pharma, Organic & Inorganic chemicals, Article of Iron & Steel and Iron & Steel under RoDTEP immediately with effect from 1st January, 2021.

Explaining about the low rates for many sectors, Dr Sakthivel said that since the rates are fixed on the basis of the data furnished by the industry, which was also affected due to the pandemic, the rates may be reviewed if more comprehensive and updated data is furnished by the industry. Moreover, there is a provision for an annual review of the rates factoring the changes in the taxes & duties in respect of parameters based on which such rates are fixed.

Dr Sakthivel thanked the Prime Minister, Commerce & Industry and Textiles Minister and the Finance Minister for providing RoDTEP support to exporters so as to impart competitiveness to exports more so at a time when exports growth is moving in northward direction offsetting the pandemic.

He said that exports are on course to achieve 400 billion dollars in the current fiscal but logistics challenges particularly unavailability of containers, shut out by shipping lines and high freights pose a serious challenge.

He also requested the government to take suitable measures so that these hiccups can be overcome.