Remission of tax on exported products welcome, says TEA

The Tirupur Exporters Association (TEA) on Friday thanked the cabinet committee on economic affairs for giving approval to remission of duties and taxes on exported products (RoDTEP), which, the association said, was a great relief to the knitwear exporters. At present, GST taxes and import or customs duties for inputs required to manufacture exported products are either exempted or refunded.

However, certain taxes/duties/levies are outside GST, and are not refunded for exports such as VAT on fuel used in transportation and duty on electricity used during manufacturing, TEA president Raja M Shanmugham said in a statement. These would be covered for reimbursement under the RoDTEP scheme and the rebate would be claimed as a percentage of the freight-on-board value of exports, he added.

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