AAI Urges implementation of RoDTEP

New Delhi, India - Aluminium Association of India (AAI) has sought urgent intervention from the Ministry of Finance and Ministry of Commerce and Industry to relieve the Aluminium industry from the burden of high taxes and duties and bolster global competitiveness for the domestic Aluminium industry. The Association has demanded urgent implementation of RoDTEP Scheme (Remission of Duties or Taxes on Export Products) for the Indian Aluminium industry on a priority basis to make India’s Aluminium exports competitive and create a level playing field for Indian exporters vis-à-vis global players in international markets.

RoDTEP Scheme is WTO compliant and has the provision to reimburse taxes/duties/levies at the central, state, and local levels, which are currently not being refunded. The Aluminium industry has already submitted all required audited data to the Ministry of Finance & DGFT to decide the remission rates for different sectors.  The succession of presentation of the scheme across sectors, prioritization of the sectors to be covered, degree of benefit to be given on various items within the rates set by the Committee will be decided and notified by the Department of Commerce (DoC).

Aluminium exports contributed $5.7 billion to India’s Forex earning in FY-19, i.e. 1.7% of total Indian exports ($330 billion). With adequate government support, Aluminium exports have the potential to compete and substitute Chinese Aluminium exports to major economies in the world. To ensure the global competitiveness of Indian Aluminium industry and realize its immense potential to enhance exports with Forex earnings to the tune of $10 billion for the country, it is imperative to reduce the burden of high taxes and support the industry with adequate remission of duties and taxes along with export incentives in the new scheme.

Image source: Magic Wand Media

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