As part of the regime for remission of duties and taxes on exported products (RoDTEP), the reimbursement rates have been set in a range of 0.3% to 4.3% of the freight value on board (FoB) of the products. exported.
The government will likely increase the allocation under two crucial tax rebate programs for exporters – RoDTEP and RoSCTL – to Rs 22,000-27,000 crore in next year’s budget, from Rs 19,400 crore. Rupees around in FY 22, a senior official told FE.
“With the sharp rebound in exports, there is a need to dramatically increase spending on these programs to ensure that all exporters continue to receive tax rebates and that our outbound shipments remain truly zero-rated, in line with best practices. global. As the export target will be much larger in FY 23, the fund requirements will also increase accordingly, ”he said.
Sustained and adequate tax breaks, in addition to structural reforms, will improve the competitiveness of exporters and better prepare them to take advantage of the current recovery in industrial demand in advanced economies, even as new Covid stress threatens their exporters. ability to meet their supply commitments on time. It also remains central to India’s efforts to increase merchandise exports to targeted $ 1 trillion by FY28, from $ 291 billion in FY21.
As part of the regime for remission of duties and taxes on exported products (RoDTEP), the reimbursement rates have been set in a range of 0.3% to 4.3% of the freight value on board (FoB) of the products. exported. Likewise, under the national and central taxes and levies reimbursement scheme (RoSCTL), garment exporters obtain certificates of up to around 6% and the garment sector up to 8.2%. The exporters body FIEO forecast that outbound shipments could reach a new peak of $ 460 billion to $ 475 billion in fiscal year 23.
Merchandise exports jumped to $ 300 billion through December, a record for the first three quarters of any fiscal year, and are on track to hit the ambitious $ 400 billion target for the current exercise. Only a sustained growth dynamic over the next few years will allow the country to regain its lost export market share. Exports had remained below par for the past decade, fluctuating between $ 250 billion and $ 330 billion annually since FY11, before the current fiscal year spike.
The government has allocated 12,454 crore rupees to the RoDTEP program and 6,946 crore rupees to the RoSCTL program for exporters of clothing and ready-made products.
At the start of this fiscal year, the government pledged to release Rs 56,027 crore to settle all outstanding royalties owed to exporters up to fiscal year 21 under various programs. This amount, in addition to the allocation of the RoDTEP and RoSCTL devices, was intended to substantially improve the liquidity of exporters affected by the Covid. The announcement was a relief for exporters, who were also hit by a surge in global shipping costs (over 200% since August 2020).
Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.