Business

Government Extends RoDTEP Tax Refund Scheme To EOUs And SEZ Units From June

The government on Monday restored tax refund benefits under the RoDTEP scheme to Export Oriented Units (EOUs), Advance Authorisation (AA) holders, and units in Special Economic Zones (SEZs).

According to a notification by the Directorate General of Foreign Trade, the benefits will apply from June this year.

These exporter categories were excluded from the scheme for six months after the previous extension ended on 31 December 2024.

RoDTEP Scheme Helps Offset Export Taxes

The RoDTEP scheme refunds duties and taxes at the central, state, and local levels that increase export product costs.

It replaced the Merchandise Exports from India Scheme after the World Trade Organisation upheld a US challenge.

The refund ranges from 0.3% to 3.9% of the exported product’s value.

The scheme, introduced in 2021, covers 10,642 products and has undergone several modifications.

The last extension, issued on 30 September, was for one year, but EOUs, SEZs, and AAs only received coverage until the end of 2024.

Exporters Gain A Competitive Edge

Exporters receive the incentive as a transferable duty credit scrip, usable for import duty payments or trading in the market. The RoDTEP scheme operates under a fixed budget.

SC Ralhan, President of the Federation of Indian Export Organisations (FIEO), welcomed the move.

“Restoring RoDTEP benefits will ensure a level playing field and enhance price competitiveness of exports,” he said.

He added that this support comes at a critical time as exporters face intense global competition and demand uncertainty.

Ralhan said the step will help push exports and strengthen India’s share in global trade.

Also Read: India’s Renewable Energy Capacity Triples To 232 GW; Solar Power Leads The Growth

Ajaypal Choudhary

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