Maintain RoDTEP rates to at least 5 % for zinc, lead exports: ILZDA to govt

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May 24, 2021 5:30 PM

The RoDTEP (Remission of Duties and Taxes on Export Products) scheme allows exporters to receive refunds on taxes and duties that are not exempted or refunded under any other scheme.

With regard to the global market, there are a number of major players in zinc and lead and India has to be very competitive price wise "if we have to sustain in the export markets", it said.The RoDTEP scheme, which had replaced MEIS on January 1, 2021, to improve the global competitiveness of Indian exports, was approved last year.

The India Lead Zinc Development Association (ILZDA) has made a plea to the government to maintain the rate under RoDTEP — a scheme to ensure exporters receive refunds on embedded taxes and duties previously non-recoverable — to at least 5 per cent for zinc and lead exports.

ILZDA, a non-profit, non-commercial organisation dedicated to market development and dissemination of technical information in respect of lead, zinc and their downstream applications, further said that maintaining the RoDTEP rate to at least 5 per cent for zinc and lead exports would give adequate support to the domestic industry to price its products competitively in the global market.

The RoDTEP (Remission of Duties and Taxes on Export Products) scheme allows exporters to receive refunds on taxes and duties that are not exempted or refunded under any other scheme.

Last year, the government approved the RoDTEP scheme for reimbursement of taxes and duties to exporters, with a view to give a boost to the country’s outbound shipments. The scheme was implemented for all goods, with effect from January 1.

“Zinc and lead industry is facing a tax and duty incidence of about 17 to 24 per cent on its FOB value…Therefore we appeal to you for your intervention to maintain the RoDTEP rates to at least 5 per cent for zinc and lead exports,” ILZDA said in a recent letter to Commerce Minister Piyush Goyal.

For the last few months, the domestic demand for zinc has been somewhat depressed due to reduced fund inflows into infrastructure, declined automobile production etc, the letter said.

The zinc industry has been “compelled to export as much zinc as possible. I also wish to inform you that the India-Korea CEPA has resulted in cheaper imports of zinc to India, taking advantage of zero duty. Thus the Indian industry has to export zinc to the global market”, it said.

With regard to the global market, there are a number of major players in zinc and lead and India has to be very competitive price wise “if we have to sustain in the export markets”, it said.

Many countries do not produce zinc and lead which are critical non-ferrous metals required for infrastructure development, automobile and appliance production among others.

Hence there is a huge opportunity for zinc and lead in many such countries, it said. RoDTEP is a scheme for refund of taxes and duties paid by exporters and hence it should have adequate fund allocation to provide timely refunds to the industry, it said.

“We therefore urge you to take up this matter with the Ministry of Finance for ensuring adequate funds to support the zinc and lead industry at minimum five per cent RoDTEP rate for enhancing competitiveness of our industry in the global market,” it said.

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