Surat: The man-made fiber (MMF) textile sector is celebrating the announcement of the much-awaited Remission of Duties and Taxes on Exported Products (RoDTEP) by the Government of India on Tuesday.
The RoDTEP, one of the flagship schemes of the government under the leadership of Prime Minister Narendra Modi, covers the entire MMF textile value chain.
Currently, the RoDTEP scheme has an outlay of Rs 12,454 crore in the current fiscal, with the refund rates ranging from 0.5% to 4.3%.
Chairman of Synthetic and Rayon Textile Export Promotion Council (SRTEPC), Dhirubhai Shah said, “Although the announced rates need to be revised to compensate the actual embedded taxes and levies paid by the exporters in case of the MMF textile lines, the inclusion of the entire value chain will encourage inclusive growth in exports of the MMF textiles from the country.”
Shah informed that the RoDTEP scheme will be WTO-compliant and hence not likely to face any issue under any international arena the scheme is one such reform, 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 SRTEPC chairman has thanked PM Modi, Union Finance Minister Nirmala Sitharaman, Union Minister for Textiles, Commerce, and Industry, Consumer Affairs, Food, and Public Distribution Piyush Goyal, and Minister of State for Textiles Darshana V Jardosh for introducing the scheme and announcement of the rates covering entire MMF textile value chain, which was one the requests of the SRTEPC and MMF textile fraternity.
Shri Bhadresh Dodhia, Vice Chairman, SRTEPC informed that the announcement of the RoDTEP rates is a much-needed initiative of the Government for improving the health of the industry and exports in the covid-pandemic
Bhadresh Dodhia, vice-chairman of SRTEPC informed that the announcement of the RoDTEP rates is a much-needed initiative of the Government for improving the health of the industry and exports in the covid-pandemic period. This will significantly help in increasing our exports and it will go a long way in achieving our vision of building an Aatmanirbhar Bharat.
According to Shah, the announcement of the RoDTEP rates will substantially help in increasing competitiveness of our exports globally and it will also improve the liquidity position of the exporters. This will also provide encouragement and support to achieve the combined export target of US$ 400 billion in the current fiscal.