To check, whether there is any anomaly in the recently announced RoDETP (Refund of Duties in Exported Products) a committee can be formed soon.
Ministry of Commerce and Industry/Ministry of Textiles will request Ministry of Finance in this regard. Piyush Goyal, Minister of Commerce and Industry, Textiles shared this information.
However, the Minister insisted that these rates are scientifically calculated and if any industry or segment wishes to revise the rates, they should make their strong presentation backed by enough data.
It should be mentioned here that recently the Government announced these rates and impetus was on yarn and fabric exports. Depending on products and their units, the rate ranges from 0.5, 0.7, 0.9, 1, 1.1, 1.2, 1.6 1.7, 2, 2.4, 2.5, 2.7, 3.1, 3.5, 3.8, 4.3 (in percentage).
Notably, the knitted fabric has been given only 1 per cent; similarly few segments also have objection on the cap fixed by the Government.
The Southern India Mills’ Association (SIMA) has requested the Government to review the rate for knitted fabric, while against low RoDTEP rates, handicraft exporters observed nationwide memorandum day recently. The rates offered to handicraft sector are in the range of 0.01 per cent to 2.4 per cent.
It is also pertinent to mention here that many exporters are comparing with the rates of MEIS scheme; however, the Government says this comparison is not right as RoDTEP is not an incentive scheme, but a refund of taxes.
