Government plans revival of RoDTEP benefits for sugar exports: Media report

New Delhi: The government is trying to work out a mechanism to bestow tax remission benefits on exports of sugar, which had been placed in the ‘restricted’ category in mid-202, reported The Hindu.

The Remission of Duties and Taxes on Export Products (RoDTEP) scheme, launched in January 2021, is designed to eliminate the imposition of domestic taxes on goods intended for export. Sugar exporters were denied benefits under the scheme in June 2022 when sugar was reclassified from the ‘free’ category to the ‘restricted’ category. This reclassification was a preventive measure aimed at bolstering domestic availability and preventing a surge in prices.

Explaining the situation, a senior Commerce Ministry official said that if any item is restricted, it is not entitled to RoDTEP benefits. So after sugar was brought into the restricted list, it has been prevented from getting RoDTEP.

“The sugar industry has appealed to the Department of Food and Public Distribution to reconsider the nature of the restriction and place it back in the free category, subject to certain conditions such as obtaining permissions from the Directorate of Sugar for exports. Once the Department of Food makes a decision, we will assess the necessary notifications to reinstate RoDTEP benefits,” added the official.


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