: Aluminium industry reiterates urgency for 5 per cent RoDTEP rate for economic sustainability #FinanceIndia #StockMarketNEWS Aluminium industry reiterates urgency for 5 per cent RoDTEP rate for economic

@StockMarketNEWS Wed 12 May, 2021

Posted in: #FinanceIndia #StockMarketNEWS

Aluminium industry reiterates urgency for 5 per cent RoDTEP rate for economic sustainability #FinanceIndia #StockMarketNEWS
Aluminium industry reiterates urgency for 5 per cent RoDTEP rate for economic sustainability New Delhi, May 12 (KNN) The Aluminium Association of India (AAI) has pushed for speedy implementation of the Remission of Duties or Taxes on Export Products (RoDTEP) scheme for the Indian Aluminium industry on priority to survive these challenging times.

In a letter to the Commerce & Industry and Finance & Corporate Affairs ministry, AAI expressed the urgent need for at least 5 per cent remission rate for the Aluminium Sector under RoDTEP Scheme to ensure its global competitiveness. The AAI also requested a separate budget allocation for the aluminium industry, being a strategic sector, to realize the immense potential to double Aluminium exports over the next 2-3 years.

Highlighting the urgency of the matter, the AAI said, the government needs to notify the actual remission rates as per actual sectoral data submitted to the RoDTEP Committee. The inordinate delay in notifying the sector-wise remission rates is creating a precarious situation and a high level of uncertainty for the Indian exporters. It is adversely impacting exports due to ambiguity w. r. t. pricing of exports goods and absence of any clarity on the mechanism of duty remission/ drawback rates for exports.

The situation for exporters further aggravates with the withdrawal of MEIS, as to date the exporters are unable to avail the MEIS benefit for exports already made during FY- 20 and FY- 21 (Apr-Dec) due to the blocking of the online MEIS module for applying claims, it added.

The Commerce Ministry and DGFT are yet to notify the rates due to Government’s current situation pertaining to budgetary constraints. Union Budget 2021-22 has allocated only Rs 13,000 crore for RoDTEP Scheme against Rs 50,000 crore announced by Finance Minister in September, 2019. This allocation is just one-third of the Rs 39,097 crore allocated in FY-20 for Merchandise Exports from India Scheme (MEIS).

Supporting the rates calculated by RoDTEP by an extensive exercise conducted through detailed discussions, due diligence and analysis done for various sectors, AAI said that implementation of its rates will give flexibility in increasing the rate in the future based on budget allocation to increase exports without any objection from WTO.

Throwing light upon the current dilemma of the Indian Aluminium industry, it further highlights the plight of the Indian Aluminium exports struggling to retain competitiveness in international markets as compared to the major exporting countries, especially China, which extends various support measures for export competitiveness. In India, the high incidence of numerous unrebated Central & State taxes/ duties impedes the growth potential of Aluminium sector in India.

Stock Market News & Best Intraday tips & Stocks near support

Report