It is also reviewing the exclusion of export-oriented units (EOUs) and SEZs from the recently notified tax refund scheme for exports.
The government is considering a proposal to allow producers in Special Economic Zones (SEZs) to sell their produce in the domestic market without being treated as imports. It is also reviewing the exclusion of export-oriented units (EOUs) and SEZs from the recently notified tax refund scheme for exports.
EPCES President Bhuvnesh Seth informed that Commerce Secretary BVR Subrahmanyam in a meeting on Monday has also assured top officials of Export Promotion Council for EOUs and SEZs (EPCES) to address the acute shortage of containers affecting exports. . Hindu.
“At present, thousands of containers are kept in SEZs for shipment. This is a great point. The commerce secretary said it would be resolved in a week or two,” Mr. Seth said, adding that freight rates and input cost had increased, but SEZs and EOU units did not get any benefit under exemption of taxes and duties had gone. On Export Products (RODTEP) scheme.
Emphasizing that SEZs are governed by an Act of Parliament, not a scheme, and that most of the benefits given to units in these sectors have ceased, including the erstwhile Exports for Goods and Services (MEIS and SEIS). Incentive schemes are included, the EPCES urged. The government will also bring them under RoDTEP.
“It will be completely harsh on the industry when you start segregating units producing the same thing near the same foreign customer, simply because they are located in a SEZ or outside. For the export market, a 4%-5% difference in prices matters,” said Mr. Seth.
“With the departure of MEIS, it is a double whammy for SEZs. We also pay duty on the purchase of raw materials and we have emphasized that if the scheme is not given to SEZs, it will be against the self-reliant India program, because then, SEZ units will be required to be procured domestically. are encouraged to import instead. Insisted.
The Ministry of Commerce has informed EPCES that they have made a reference to the Department of Revenue in the Ministry of Finance to consider the cases which were left out of RoDTEP.
Mr. Seth also indicated that the government is looking favorably at the request to allow SEZs to sell goods and services in the domestic market. “We think the commerce ministry will agree to our proposal that you can sell in DTA on payment of the duty left on the raw material. It will be an advantage for them to expand production in private SEZs with world-class infrastructure,” he said.
.