Raising RoDTEP rates and covering more items key to achieving FY22 target

New Delhi, Aug 20 (FN Agency) The government should relook refund rates under RoDTEP and ensure a full rebate on the taxes in the export production chain failing which Indian engineering goods exporters could lose some of the markets said EEPC India Chairman Mahesh Desai. “In addition to this, dues on account of the MEIS scheme should be cleared. The working capital limits should be increased by banks as steel prices have increased by double and freight rates by 3 to 4 times. These support are needed to meet the US$107 billion exports target for the sector in FY22,” he said. Mr Desai said a representation has been given to the government in this regard and hopefully, the demands would be positively considered.

The EEPC Chairman also called for extending the Interest Equalization Scheme till March 31, 2024. The EEPC Chairman noted that RoDTEP rates have not taken into account the taxes embedded in raw materials like steel in the engineering products in a large number of cases. “MSMEs exporters like those in castings, fasteners, flanges etc., have not been considered for RODTEP which is deeply disappointing,” he said. On problems faced by the engineering goods sector, the EEPC Chairman said both local and sea freight rates had spiralled and container shortage problems ensued. Concerning the new FTAs, Mr Desai said if the downstream HS chapters are opened up, the upstream chapters should also be opened up in the same manner.