Benefits under RoDTEP cut to half

THE GOVERNMENT HAS slashed the benefits under the scheme that refunds taxes incurred at the production stage of exported goods by half, sparking concern among exporters facing a highly uncertain global trade environment.

- FE BUREAU

“With immediate effect, the applicable Remission of Duties and Taxes on Exported Products (RoDTEP) rates shall be limited to 50% of the existing rates and, where applicable, 50% of the notified value caps,” a notification by the Directorate General of Foreign Trade said.

RoDTEP reimburses taxes, duties and levies at the central, state and local level which are currently not being refunded under any other mechanism but are incurred by the exporters in the process of manufacture and distribution of exported products.