SEZs may get duty refunds from next year

India could offer further concessions to enterprises within special economic zones and export-oriented units to boost the exports sector. The finance ministry will soon set up a panel to work out details of extending the recently announced tax neutralisation scheme – Remission of Duties and Taxes on Exported Products (RoDTEP) – to these entities, director-general of foreign trade Amit Yadav said.

“This committee will determine the remission rates which can be the rates for advance authorisation license, SEZs and EoUs,” Yadav said, adding that the budgeted amount would be provided thereon.

For advance authorisation, SEZs and EoUs, the principle cannot be the same as that for units within the domestic tariff area, he said.

The scheme for these would likely be available by next financial year. Units within SEZs and EOUs source as much as 30% of their inputs from the domestic tariff area and industry has been demanding neutralisation for taxes paid on them for some time.