Stories
Govt Extends RoDTEP Scheme Till Dec 31; Exporters Urge Long-Term Certainty
- •The government has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by three months, until December 31.
- •Exporters, while welcoming the extension, are advocating for a longer-term extension to provide greater predictability for pricing and securing orders.
- •The RoDTEP scheme, launched in 2021, refunds taxes, duties, and levies incurred by exporters that are not reimbursed through other mechanisms.
- •Refunds under the scheme range from 0.3% to 3.9%, with a budget allocation of Rs 18,232 crore for 2025-26.
- •Industry experts emphasize that short extensions undermine the scheme's purpose, as exporters need long-term certainty to factor tax refunds into competitive pricing.
Key Questions Answered
The government extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by three months until December 31, 2026. The notification from the Directorate General of Foreign Trade specifies that the extension applies to eligible exports from domestic tariff area, advance authorisation, special economic zone, and export-oriented unit facilities.
While welcoming the short-term extension for providing business continuity and reassurance amid global trade uncertainties, trade bodies like FIEO and GTRI have urged the government to implement a long-term or five-year extension. Exporters noted that short-term extensions defeat the purpose because pricing decisions are made months ahead without clarity on tax refund policies.
Launched in 2021, RoDTEP refunds taxes, duties, and levies incurred during manufacturing and distribution that are not reimbursed elsewhere, covering unrecovered expenses like state fuel taxes, electricity duties, and mandi charges. Refund rates under the scheme span from 0.3 per cent to 3.9 per cent.
