Aluminium industry seeks 5% RoDTEP rate
ECONOMY & POLICY

Aluminium industry seeks 5% RoDTEP rate

The Ministry of Finance announced implementation of Remission of Duties and Taxes on Export Products (RoDTEP) scheme and extending benefit to all export goods, with effect from 1 January 2021, in response to which the aluminium industry seeks 5% RoDTEP rate to boost exports.

The announcement of the RoDTEP scheme is seen as a relief for exporters post withdrawal of the Merchandise Exports from India Scheme (MEIS) and is said to provide much needed impetus to boost Indian exports.

However, the pendency of notifying the sector wise remission rates under RoDTEP scheme is creating uncertainty for Indian exporters due to ambiguity with respect to pricing of goods and thereby impacting Indian exports. The recently announced Union Budget 2021-22 has kept provision of Rs 13,000 crore for RoDTEP, which has been significantly curtailed from Rs 50,000 crore allocation for RoDTEP scheme when first announced by the Finance Minister in September 2019.

According to the Aluminium Association of India (AAI), following the withdrawal of MEIS, in absence of any export incentives or remission mechanism, the aluminium exports are struggling to remain globally competitive as compared to the major exporting countries, especially China. In India, the high incidence of numerous unrebated Central and State taxes and duties impedes the growth potential of the aluminium sector in India. The various taxes constitute 15% of aluminium production cost which is amongst highest in the world. This is said to have an adverse impact on the sustainability and competitiveness of the aluminium industry and further renders Indian exporters vulnerable and uncompetitive in comparison to global players in international markets.

The duties and taxes should not be exported as such and should be remitted back to encourage domestic value addition and export of finished products. Under MEIS, the aluminium exports were eligible for a 2% reward rate which itself does not provide ample cushion to remain competitive against current bearish market conditions. The government support is extremely crucial at this juncture to reduce burden of taxes and levies with at least 5% remission rate under RoDTEP to boost exports and survive this challenging phase.

Written from an AAI statement.

Image source

The Ministry of Finance announced implementation of Remission of Duties and Taxes on Export Products (RoDTEP) scheme and extending benefit to all export goods, with effect from 1 January 2021, in response to which the aluminium industry seeks 5% RoDTEP rate to boost exports. The announcement of the RoDTEP scheme is seen as a relief for exporters post withdrawal of the Merchandise Exports from India Scheme (MEIS) and is said to provide much needed impetus to boost Indian exports. However, the pendency of notifying the sector wise remission rates under RoDTEP scheme is creating uncertainty for Indian exporters due to ambiguity with respect to pricing of goods and thereby impacting Indian exports. The recently announced Union Budget 2021-22 has kept provision of Rs 13,000 crore for RoDTEP, which has been significantly curtailed from Rs 50,000 crore allocation for RoDTEP scheme when first announced by the Finance Minister in September 2019. According to the Aluminium Association of India (AAI), following the withdrawal of MEIS, in absence of any export incentives or remission mechanism, the aluminium exports are struggling to remain globally competitive as compared to the major exporting countries, especially China. In India, the high incidence of numerous unrebated Central and State taxes and duties impedes the growth potential of the aluminium sector in India. The various taxes constitute 15% of aluminium production cost which is amongst highest in the world. This is said to have an adverse impact on the sustainability and competitiveness of the aluminium industry and further renders Indian exporters vulnerable and uncompetitive in comparison to global players in international markets. The duties and taxes should not be exported as such and should be remitted back to encourage domestic value addition and export of finished products. Under MEIS, the aluminium exports were eligible for a 2% reward rate which itself does not provide ample cushion to remain competitive against current bearish market conditions. The government support is extremely crucial at this juncture to reduce burden of taxes and levies with at least 5% remission rate under RoDTEP to boost exports and survive this challenging phase. Written from an AAI statement. Image source

Next Story
Real Estate

Bennet & Bernard Unveil Dutch-Inspired ‘Casa El Toledo’ in Goa

Bennet & Bernard Group, Goa’s leading luxury real estate developer, has launched its newest project, Casa El Toledo, in Assagao. The enclave features 18 ultra-luxury 4 BHK Dutch-style villas blending European charm with tropical elegance. Each villa includes a private pool, double-height ceilings, open courtyards, alfresco dining areas, and English-inspired landscaping. The interiors are curated by noted Dutch designer Kelly Marie.   Reflecting the grandeur of the Dutch Golden Age, Casa El Toledo harmonises heritage aesthetics with modern sensibilities. Expansive interiors flow..

Next Story
Equipment

Godrej Delivers Heaviest Ecolaire Surface Condenser to US Project

Godrej Enterprises Group’s Process Equipment business has manufactured and delivered its heaviest Ecolaire® Surface Condenser to date, weighing nearly 450 metric tonnes, for a power-generation project in the United States. The project, powered by natural gas and partly designed for hydrogen compatibility, marks another step in advancing clean energy systems. Produced at the company’s GreenCo-certified Dahej facility in Gujarat, the equipment demonstrates India’s growing engineering capabilities and reinforces Godrej’s ‘Make in India for the World’ vision.  Hussain S..

Next Story
Infrastructure Energy

India, Brazil Discuss Energy Ties And Oil Investments

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri held discussions with Celso Luis Nunes Amorim, Special Advisor to the President of Brazil, and senior Brazilian officials to strengthen bilateral cooperation in the oil, gas, and energy transition sectors. The talks took place during a dinner hosted by Kenneth H da Nobrega, Ambassador of Brazil to India, at his residence in New Delhi.Mr Puri said the meeting focused on Indian investments in Brazil’s oil and gas sector, as well as expanding collaboration in energy transition and biofuels. “The enriching conversation revolved ar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?