Electronics makers propose 2-4% sops on exports under RodTEP scheme

The electronics industry has proposed an incentive rate of 2%-4% on exports of key product categories including mobile phones, laptops, tablets, chargers and batteries under the newly launched Remission of Duties or Taxes on Export Products (RoDTEP) scheme.

The India Cellular and Electronics Association (ICEA), has calculated a RoDTEP rate of 2% on smartphones, 2.4% on featurephones, 2% on tablets/laptops, 3.4% on battery chargers and 1.48% on battery packs.

“RoDTEP is critical to address India’s deep disabilities vis-à-vis its competitors for boosting electronics manufacturing and making it India’s number 1 export by 2025,” said Pankaj Mohindroo, Chairman ICEA.

“This needs to be an ongoing exercise to address the adverse impact on India’s competitiveness, of high taxes which remain unremitted. An early finalisation of RoDTEP base rate and rates of priority products needs to be our immediate focus”, he said.

RoDTEP, which replaced the erstwhile Merchandise Exports Incentive Scheme (MEIS) from January 1, 2021, is a WTO-consistent scheme which aims to reimburse the exporters all Central and State taxes/duties/levies on electricity, fuel, transport, stamp duty, excise duty, power and other costs.

Comparatively, the MEIS offered a straightforward incentive of 2%-4% on the total value of exported products.

The government is yet to notify RoDTEP rates which are being calculated by a three-member committee under former home and commerce secretary GK Pillai, formed in July 2020.