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Taking a major step to boost exports, the commerce ministry has said the government has extended export benefits under the tax refund scheme -- Remission of Duties and Taxes on Exported Products (RoDTEP) -- to chemicals, pharmaceuticals and products of iron and steel for a specified period.  It said that this was a long standing demand of the industry, which has been accepted.

Benefits under the Remission of Duties and Taxes on Exported Products Scheme will be given to exports made during December 15 this year till September 30 next year. These sectors were left out in the earlier exercise which was conducted in August 2021.

The government in August last year announced the rates of tax refunds under the export promotion scheme RoDTEP for about 8,700 products, such as marine goods, yarn and dairy items. In the last fiscal, Rs 12,454 crore was there for refunds under the scheme. After the addition of these products, the expanded list will increase from the current 8,731 export items to 10,342 goods.

RoDTEP is based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters.