HE tea industry has soughthigherrates under the Ro DTEP scheme to make exports more competitive in the overseas markets. Leading industry body Indian Tea Association(ITA),inits pre-budgetmemorandum,saidthatthepresent RoDTEP rate for bulk tea is 1.7 per cent (freeonboard) subject to a cap of Rs 6.70 per kilogram. The association urged the Government to increase the reward base rate underthe 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), inits pre-Budgetproposal submittedto 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. Sinceitsinceptionin January 2021, the RoDTEP scheme has already provided support amounting to Rs 42,000 crore to more than 10,500 export items, an official statement saidinMarch.Theassociation has also sought for imposition of an antidumping duty on imports of Nepal tea.

 

TheTAI said that this measure would preventthedumpingofcheapanddutyfree tea from Nepal and boost exports of genuineDarjeeling tea. Sucha measure would also thwart the passing off of Nepalese tea as a geographical indication (GI) tag product. The ITA said that the Government should exempttea from levy onTDS on cash withdrawals due to a lack of banking infrastructure in the tea-growing areas in the country.