Industry body Aluminium Association of India has sought an extension of the Remission of Duties or Taxes on Export Products scheme for aluminium-producing units in special economic zones, amid global tariff and trade uncertainties.
"Although previously covered under its ambit, the inclusion of this category of aluminium producers within the RoDTEP scheme lapsed in February this year. Given the ongoing global trade uncertainties, the AAI has stressed on the urgent need to further extend the applicability of the RoDTEP Scheme for exports from aluminium producers located in Advance Authorisation (AA) holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZs)," the body said in a statement.
Further delay could leave Indian industries vulnerable to the impact of global trade uncertainties, leading to extensive production cuts, job losses, and hampered domestic growth, it added.
With over $20 billion invested in growing domestic capacity, India is the second-largest aluminium producer globally with an annual capacity of 4.1 million tonnes.
Under the RoDTEP scheme, the government allows refunds of embedded central, state and local duties to exporters.
In a letter to Union Finance Minister Nirmala Sitharaman, the body highlighted that at present, export-oriented aluminium producing units continue to bear a high incidence of both central and state taxes, constituting up to 10% of production costs. "Without an extension of the RoDTEP scheme, this would impact the global competitiveness of Indian aluminium exports as compared to their global peers," it said.
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