The industry has demanded Finance Minister Nirmala Sitharaman to carry forward the export incentive scheme RoadTap. The industry has requested to extend the duty and tax exemption (Rhodtep) scheme on export products for export -oriented units (EOUs) and Special Economic Areas (SEZs) till 30 September.
The Union Budget of FY 2025-26 will be presented on 1 February this year. In a letter to Sitharaman, the Export Promotion Council (EPCES) for the EOU and SEZ has also asked to fulfill the long -standing demand for changes in SEZ laws through the Finance Bill, so that the government promotes self -sufficient by promoting manufacturing manufacturing. Can increase its attention on India.
Since the announcement of a new look to these areas in the budget of FY 2023, there has been a demand for change in the SEZ law, which has been pending for about 3 years. According to the Export Promotion Council, this has also created a sense of uncertainty towards this policy within the current and in the coming times in SEZ.
The EPCES has written a letter demanding a change in the SEZ Act to enable the supply to the rest of the country on the basis of tax exemption instead of paying full customs duty. The letter states that companies should not expect to set up two plants- one for exports and for the domestic market, this will reduce the competitiveness of exports and also reduce the scale economy of the scale. Such permission is already in the MOOWR scheme and EOU. This will promote desi manufacturing.
The council has requested Union Finance Minister Sitharaman to allow the supply of services to be paid in local currency. The council has said that it is allowed in goods. There is no justification for purchasing foreign currency for payment of services in transactions from SEZ to DTA. The RODTEP scheme for exports from SEZ, EOU and Advance Authority (AA) holders ended on 31 December but was extended till 29 January amid requests from the Department of Industry and Commerce.
The Department of Commerce has also sought an additional allocation of about Rs 1,600 to Rs 1,700 crore, so that the government will be able to draw the scheme by 31 March. If it is extended by September, there will be no obstruction of the budget as there is a system in the roadtap scheme, which allows a 10 per cent increase in allocation.