Commerce, Finance Ministries at odds over future of key export support schemes
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Commerce and Finance Ministries are at odds over extending two key export support schemes, RoDTEP and RoSCTL, which expire on December 31.
- ✓The Commerce Department wants a five-year extension to help exporters, but the Finance Ministry remains unconvinced.
- ✓"Some exporters fear that the Finance Ministry may discontinue the scheme."
Story at a Glance
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- MARKET
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- Business Line
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Commerce Department seeks five-year extension, but Finance Ministry remains unconvinced about their effectiveness; some exporters fear discontinuation
The Commerce Department is holding consultations with the Finance Ministry to secure a longer-term extension of two key export support schemes -- the Remission of Duties and Taxes on Exported Products (RoDTEP) and the Rebate of State and Central Taxes and Levies (RoSCTL). Their latest three-month extensions are set to expire on December 31, even as the Finance Ministry is yet to be convinced about their effectiveness in boosting exports, according to sources.
"The Commerce Department had sought a five-year extension of the two schemes before they lapsed on September 30, arguing that remission of embedded input taxes was reimbursement, not an incentive. But it was ignored. It is trying again as the schemes are key export supports amid geopolitical crisis affecting trade," a source said.
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