THE Aluminium Association of India (AAI) expressed urgent need for at least 5 per cent remission rate for the sector under the tax refund scheme RoDTEP to ensure global competitiveness.
The AAI recently said that it has also requested the Government for a separate budget allocation for the aluminium industry, being a strategic sector, to realise the immense potential to double aluminium exports over the next two-three years.
In a letter to the Government, the AAI expressed “the urgent need for at least 5% remission rate for the aluminium sector under RoDTEP Scheme to ensure its global competitiveness”.
AAI said that the Government needs to notify the actual remission rates as per actual sectoral data submitted to the RoDTEP Committee. The inordinate delay in notifying the sector-wise remission rates is creating a precarious situation and a high level of uncertainty for the exporters.
“It is adversely impacting exports due to ambiguity w.r.t. pricing of exports goods and absence of any clarity on the mechanism of duty remission/ drawback rates for exports,” it said. The situation for exporters further aggravates with the withdrawal of Merchandise Export Incentive Scheme (MEIS), as to date the exporters are unable to avail the MEIS benefit for exports already made during FY’20 and FY’21 (Apr-Dec) due to blocking of on-line MEIS.