Rajkot: The number of incentives from RS 1,500 Crore Saurashtra exporters who qualify under the export of merchandise from the Indian scheme (Mies) has been stuck over the past 18 months, the Rajkot Chamber of Commerce and Industry (RCCI) has stated.
In a detailed representation of the problems faced by the exporter conducted to the Union Ministry of Commerce on Wednesday, RCCI requested the release of incentives immediately to increase exports.
Rajkot’s positive export sector but according to traders if some problems are resolved, they can compete strongly at the international level which will produce more dollars to the state and also increase exporter profits.
MEIS was revoked from January 1, 2021 but the government did not pay incentives based on this scheme starting April 1, 2020 to 31 December 2020.
In this scheme, the government provides an incentive of 3-5% on various export products.
The incentive receipt is used in paying import duties and exporter is allowed to sell this receipt to importers.
The central government then replaces MEIS with the remission of tasks and taxes on export products (Rodtep), but the rate of refund under this scheme has not been announced.
As a result, exporters don’t know how many benefits they will get and therefore they cannot quote prices to international buyers.
Parth Ganatra, Vice President, RCCI said, “Exporter of all Saurashtra commodities, both techniques, ceramics, brass etc., faced this problem.
We asked the government again to solve these problems to improve the industry, especially when the economy was in trouble due to pandemic.
“RCCI also urged the ministry to immediately announce the tariff under this scheme.
The representation stated that an unprecedented increase in shipping costs and various raw materials undermined their profits.
RS 1,500 Crore Incentives from Saurashtra Exporters Trapped for 18 months: RCCI
