The government has reduced customs duty benefits available to exporters under the Remission of Duty and Tax on Exported Products (RoDTEP) Scheme by 50 per cent with immediate effect, prompting industry bodies to urge a review of the decision, news agency PTI reported.The Directorate General of Foreign Trade (DGFT) said applicable RoDTEP rates will now be capped at half the current rates and notified value limits.“RoDTEP benefits will be limited to 50 per cent of the notified prices and value limits with immediate effect,” the DGFT said in a notification.Launched in 2021, the RoDTEP scheme provides recovery of taxes, duties and fees incurred during manufacture and distribution of exported goods which are not reimbursed under any other central, state or local mechanism.Cashback benefits under the scheme currently range between 0.3 per cent and 3.9 per cent.Reacting to the move, Federation of Indian Export Organizations (FIEO) president SC Ralhan said the cut comes at a difficult time for exporters facing global economic pressures.“The interest rate cuts and 50 per cent reduction in value caps have come at a particularly difficult time when Indian exports are already facing significant global headwinds, including slowing demand, increasing uncertainty and rising protectionism. We ask the government to reconsider the decision,” he said.Government data released showed that the country’s exports rose marginally by 0.61 percent to $36.56 billion in January, while the trade deficit widened to a three-month high of $34.68 billion.
