The tea industry has sought higher rates under the RoDTEP scheme to make exports more competitive in the overseas markets.
Leading industry body Indian Tea Association (ITA), in its pre-budget memorandum, said that the present RoDTEP rate for bulk tea is 1.7 per cent (free on board) subject to a cap of Rs 6.70 per kilogram.
The association urged the government to increase the reward base rate under the Remission of Duties and Taxes on Exported Products (RoDTEP) for black tea in bulk to remain competitive in the international markets.
The RoDTEP scheme ensures that exporters receive refunds on embedded taxes and duties that were previously non-recoverable.
Another industry body Tea Association of India (TAI), in its pre-budget proposal submitted to the government, said the RoDTEP rate for tea should be higher than the earlier MEIS (merchandise exports incentive scheme) of five per cent to enable Indian tea to retain its competitiveness in the global market.
Since its inception in .
