The Federation of Pharmaceutical Merchant Exporters and Allied Products (FPME) stated that pharmaceutical exporters are feeling neglected and taken for granted under Remission of Duties and Taxes on Exported Products (RoDTEP), as no rates were announced under chapter 29 and 30 by the Directorate General of Foreign Trade (DGFT) under the new RoDTEP export promotion scheme.

As per Pharmexcil data, there are approximately 2,000 merchant exporters in the country, as big chunk of exporters are adversely affected by this decision of leaving them out of the RoDTEP benefit.

“Despite challenges, pharmaceutical sector has made India proud by delivering growth amid challenges, but the government seems to be sending a signal that the pharmaceutical industry doesn’t require any incentives,” stated FPME.

DGFT has notified Rs. 12,400 crore RoDTEP export promotion scheme which is just 30% of MEIS outlay. The new export refund rates under RoDTEP would cover 8,555 tariff lines or individual merchandise products traded by India internationally. The rates for different sectors include 0.5 %, 2.5 % and 4 %.

The primary aim of the RoDTEP scheme is to reimburse the taxes and duties incurred by exporters such as local taxes, coal cess, mandi tax, electricity duties and fuel used for transportation, which are not getting exempted or refunded under any other existing scheme such as Duty Drawback, GST refunds, central/state government exemptions, subsidy, etc.

The scheme’s aim is to refund, currently un-refunded duties/ taxes/levies, at the Central, State & local level, borne on the exported product, including prior stage cumulative indirect taxes on goods & services used in production of the exported product; and such indirect duties/taxes/levies in respect of distribution of exported products, as per the Commerce Department.

The RoDTEP scheme, notified on January 1, replaced the controversial MEI Scheme. The primary purpose of the scheme was to give a boost to Indian exports by offering a level playing field. Going by that core objective, it is an unaccomplished mission for a sector which has an ambitious target and has been the back bone of Country’s Exports.