- 08 Dec 2022
- ICICIdirect Research
Inclusion of iron & steel in RoDTEP scheme augurs well for steel sector
News:
In order to boost exports, the Centre has further expanded the scope of Remission of Duties and Taxes on Exported Products Scheme (RoDTEP) by including exports made from the iron & steel sector. The scheme now includes exports of articles of iron & steel under chapter 73. Benefits under the scheme will be given to exports made between December 15 this year and September 30 next year. RoDTEP is based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters. The RoDTEP scheme rebates/refunds the embedded Central, State and local duties/taxes to the exporters that were so far not being rebated/refunded
View:
In present times, when exports are facing headwinds on account of signs of recession in some developed markets and supply chain disruptions on account of Russia-Ukraine conflict, extension of RoDTEP scheme to uncovered sector like iron and steel would aid in enhancing export competitiveness of the sector
Impact:
Positive