The government has notified the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme guidelines and rates for various sectors including electrical / electronic with an aim to boost exports and India’s competitiveness in the global markets. The rate has been capped to Rs 24.5 per unit for smartphones and Rs 2.30 for printed circuit board assembly (PCBA).
The RoDTEP rates will cover 8,555 tariff lines. The government has set aside Rs 124.54 billion for refunds under the RoDTEP scheme for the current fiscal. Under the RoDTEP, various central and state duties, taxes, and levies imposed on input products, among others, would be refunded to exporters.
In this regard, handset manufacturers have said that there is a need to rework the capping of the RoDTEP rates on mobile phones and PCBAs. According to the India Cellular and Electronics Association (ICEA), the condition of non-availability of RoDTEP for SEZs’, EOUs’, Advance Authorisation Bond under Section 65 etc., is also not logical since these dispensations also suffer the unabsorbed indirect taxation on fuel, electricity etc. The industry body is, however, satisfied with the RoDTEP rates on laptops, tablets, desktops, keyboards, earphones, speakers and batteries with the current level of domestic value addition.
As per the government, Rs 194 billion would be available for 2021-22 for both the RoDTEP and the Rebate of State and Central Taxes and Levies (RoSCTL). The RoSCTL scheme was announced for the export of garments and apparels. For the RoDTEP scheme, the amount is Rs 124.54 billion and the remaining Rs 69.46 billion for RoSCTL. Both the schemes together would cover 95 per cent of the tariff lines or goods and exports. As the RoDTEP scheme came into effect from January 1 this year, additional funds will be provided at pro-rata basis for the period January to March.