Reuters, citing a senior government official, reported that India's trade ministry has sought to extend an export promotion scheme to reimburse some local levies for domestic steel producers as the industry reels from steep fall in shipments. The official said "The finance ministry’s revenue department will take a call on this, as expanding the scheme requires additional budgetary support.” The source added “Government will have to set aside nearly USD 244 million annually to offer refunds on such taxes to the steel sector.” The Remission of Duties and Taxes on Export Products scheme offers refunds against various embedded taxes to exporters across sectors such as automobiles and agricultural produce, with steel exports presently outside its remit. The report quoted Indian Steel Association Secretary General Mr Alok Sahay as saying that “Levies, duties and taxes, which are not subsumed in the goods and services tax, can add 8%-12% to costs for the steel industry. The steel industry needs RoDTEP to offset these embedded costs of industry for parity with other exporting countries.”
Reuters, citing a senior government official, reported that India's trade ministry has sought to extend an export promotion scheme to reimburse some local levies for domestic steel producers as the industry reels from steep fall in shipments. The official said "The finance ministry’s revenue department will take a call on this, as expanding the scheme requires additional budgetary support.” The source added “Government will have to set aside nearly USD 244 million annually to offer refunds on such taxes to the steel sector.” The Remission of Duties and Taxes on Export Products scheme offers refunds against various embedded taxes to exporters across sectors such as automobiles and agricultural produce, with steel exports presently outside its remit. The report quoted Indian Steel Association Secretary General Mr Alok Sahay as saying that “Levies, duties and taxes, which are not subsumed in the goods and services tax, can add 8%-12% to costs for the steel industry. The steel industry needs RoDTEP to offset these embedded costs of industry for parity with other exporting countries.”
