: Aluminium industry seeks 5 per cent RoDTEP rate to boost exports #FinanceIndia #StockMarketNEWS Aluminium industry seeks 5 per cent RoDTEP rate to boost exports New Delhi, Mar 5 (KNN) The Aluminium

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Aluminium industry seeks 5 per cent RoDTEP rate to boost exports #FinanceIndia #StockMarketNEWS
Aluminium industry seeks 5 per cent RoDTEP rate to boost exports New Delhi, Mar 5 (KNN) The Aluminium Association of India (AAI) has sought immediate support for notifying at least five per cent remission rate for Aluminium sector under RoDTEP scheme to ensure its global competitiveness and realize its immense potential to double exports worth 10 billion dollars Forex earnings for the country.

In March last year, the government approved the scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) for reimbursement of taxes and duties to exporters, with a view to give a boost to the country’s dwindling outbound shipments.

“The aluminium industry seeks immediate support for notifying at least five per cent remission rate for aluminium sector under RoDTEP scheme,” Aluminium Association of India (AAI) said in its letter to Ministry of Finance & Corporate Affairs and Ministry of Commerce and Industry on Thursday.

However, the pendency of notifying the sector-wise remission rates under RoDTEP scheme is creating a precarious situation and uncertainty for Indian exporters due to ambiguity with regard to pricing of goods and thereby impacting Indian exports, it noted.

The situation for exporters has been further aggravated due to withdrawal of Merchandise Export from India Scheme and till date, exporters are unable to avail the MEIS benefit for exports already made during FY’20 and FY’21 (April to December) due to blocking of online MEIS module for applying for claims.

This has resulted in blockage of significant funds for the already stressed non-ferrous metal sector exporters, it said.

In the absence of any export incentives/ remission mechanism, the aluminium exports are struggling to remain globally competitive 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 and state taxes/ duties impede the growth potential of the aluminium sector. Various taxes constitute 15 per cent of the aluminium production cost which is amongst highest in the world.

This adversely impacts the sustainability and competitiveness of aluminium industry and further renders Indian exporters vulnerable and uncompetitive vis–vis global players in international markets, as per the grouping.

“These duties and taxes should not be exported as such and should be remitted back to encourage domestic value addition and export of finished products,” it said.

It further said that under the MEIS, the aluminium exports were eligible for a two per cent reward rate which itself does not provide ample cushion to remain competitive against current bearish market conditions.