New Delhi, Tobacco exporters have asked the government to extend the RoDTEP duty drawback scheme to the sector to boost outbound shipments.
In a meeting with Commerce and Industry Minister Piyush Goyal in Hyderabad on June 29, traders claimed that tobacco exporters are not covered under any scheme providing export incentives.
"They requested to extend support to tobacco exporters by including them in the RoDTEP scheme," the ministry said in a statement.
They also sought help from the government to reduce the unauthorized production and use of chewing tobacco in India, which is a huge loss to the public exchequer, he added.
They also reported that there is an increase in the illicit sale of cigarettes.
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme provides for refund of taxes, duties and levies incurred by exporters in the process of manufacturing and distribution of goods and which are not refunded through any other mechanism at the Centre. state or local level.
In the meeting, Goyal informed that the export value of raw tobacco and tobacco products broke all records at Rs 12,005.80 crore ($1.5 billion).
Participants also pointed out the problems faced by tobacco farmers in tobacco production, such as labor shortage, lack of assistance for agricultural mechanization, higher cost of sulfate of potassium (SOP) fertilizer, penalties due to excess tobacco production and the increase in the cost of fuel for tobacco barns. and sought the necessary technological and financial assistance from the government.
He has assured to address the problems of farmers and the tobacco industry.
Goyal stated that all possible efforts will be made to remove the penalty on excess tobacco produced by farmers this year. He added that the validity period of registration will be extended from 1 year to a period of 3 years.
It will be available to all tobacco producers in the next season.
In a meeting with Commerce and Industry Minister Piyush Goyal in Hyderabad on June 29, traders claimed that tobacco exporters are not covered under any scheme providing export incentives.
"They requested to extend support to tobacco exporters by including them in the RoDTEP scheme," the ministry said in a statement.
They also sought help from the government to reduce the unauthorized production and use of chewing tobacco in India, which is a huge loss to the public exchequer, he added.
They also reported that there is an increase in the illicit sale of cigarettes.
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme provides for refund of taxes, duties and levies incurred by exporters in the process of manufacturing and distribution of goods and which are not refunded through any other mechanism at the Centre. state or local level.
In the meeting, Goyal informed that the export value of raw tobacco and tobacco products broke all records at Rs 12,005.80 crore ($1.5 billion).
Participants also pointed out the problems faced by tobacco farmers in tobacco production, such as labor shortage, lack of assistance for agricultural mechanization, higher cost of sulfate of potassium (SOP) fertilizer, penalties due to excess tobacco production and the increase in the cost of fuel for tobacco barns. and sought the necessary technological and financial assistance from the government.
He has assured to address the problems of farmers and the tobacco industry.
Goyal stated that all possible efforts will be made to remove the penalty on excess tobacco produced by farmers this year. He added that the validity period of registration will be extended from 1 year to a period of 3 years.
It will be available to all tobacco producers in the next season.
