Under RoDTEP, various central and state duties, taxes and levies
imposed on input products, among others, will be refunded to exporters
The finance ministry has turned down the
commerce ministry’s proposal to extend an export duty refund scheme to the
steel, pharmaceuticals and chemicals industries because of limited funds.
Sources said the finance ministry rejected the
proposal citing limited budgetary allocation to the scheme — remission of
duties and taxes on export products(RoDTEP) — and there were other areas which
need more attention.
The government had last week removed the export
duty on iron ore and certain grades of steel, welcomed by the steel industry,
battling a strain on their margins since May when the levy was imposed.
The export duty had also led to a slide in
domestic steel prices which are expected to rise after the scrapping of the
export levy.
Under RoDTEP, various central and state duties,
taxes and levies imposed on input products, among others, will be refunded to
exporters. Rebates are issued in the form of a transferable duty
credit/electronic scrip (e-scrip) which is maintained in an electronic ledger
by the Central Board of Indirect Taxes and Customs.
Eligible exporters get refunds from the
government in the range of 0.3 per cent to 4.3 per cent of the free-on-board
value of their products