The chemical industry is seeking tax reforms and technological assistance to sustain its growth effectively. Amidst the geopolitical tensions in Europe and the Middle East, the industry’s agenda includes seeking relief in freight services via the Red sea and implementing anti-dumping measures to prevent countries such as China, Korea, and Thailand from flooding the Indian markets with their cheaper products.
As reported by Financial Express, the RoDTEP (Remission of Duties and Taxes on Export Products) scheme, operational since January 1, 2021, ensures that exporters receive refunds on embedded taxes and duties. The measure aims to enable Indian manufacturers to compete internationally and bolster their export capabilities. Highlighting the necessity for enhanced technological support, Jaimin Vasa, Chairman of the Gujarat Chemical Association, emphasized that India currently lacks the requisite technological expertise and advancements in the sector.
Abhay V Udeshi, Chairman, CHEMEXCIL said, “For the Budget 2024, the government should consider about the RoDTEP (Remission of Duties and Taxes on Export Products) Scheme, challenges in freight services due to the instability in the Red Sea and some tax exemptions for the investments in research and development. The RoDTEP Scheme provides for a flat 0.8% exemption rate for the chemical exporters but the industry needs the rates to range between 1% to 5% depending on different criteria because the flat rate is reducing the export competitiveness of Indian manufacturers. Apart from that, seeing worsening conditions around the Red Sea, the government should also provide some freight support packages to help the industry in dealing with increasing freight rates”.
