Stories
RoDTEP Scheme Likely Extended Beyond September 30 Deadline, Offering Exporter Relief
- •Government sources indicate the RoDTEP scheme will likely be extended past its September 30 deadline, providing crucial relief to exporters.
- •A committee has been formed to strengthen the RoDTEP framework and explore adding new components, with internal discussions and inter-ministerial consultations underway.
- •The existing RoDTEP scheme is expected to be extended within days, pending finalization of the new framework.
- •The scheme refunds embedded taxes, duties, and levies not otherwise reimbursed, including state fuel taxes, electricity duties, and mandi charges.
- •Exporters advocate for the scheme's continuation, as lower RoDTEP rates can increase export costs and impact competitiveness in price-sensitive global markets.
Key Questions Answered
Yes, government sources indicate that the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is likely to be extended before the September 30 deadline to provide relief to exporters. A committee has also been formed to strengthen the framework and consider adding new components while internal and inter-ministerial consultations take place.
The RoDTEP scheme provides exporters with a refund for certain embedded taxes, duties, and levies incurred during manufacturing and distribution that are not otherwise reimbursed. These refundable expenses include state taxes on fuel, electricity-related duties, and mandi charges, with refund rates ranging from 0.3 per cent to 3.9 per cent.
Analysts emphasize that lower RoDTEP remission rates increase the effective cost of exporting by reducing tax refunds, putting pressure on margins, and making it harder for Indian firms—especially smaller ones—to compete in price-sensitive global markets. Organizations like the GTRI note that even minor cost increases are critical when global demand is weak and logistics expenses are high.
