India to reinstate tax refund benefits for exporters from June to boost competitiveness
NEW DELHI, May 27 (Reuters) - India will restore benefits under a key scheme that reimburses exporters for embedded duties, taxes, and levies not covered by any other government refund programme in an effort to boost export competitiveness, the trade ministry said on Tuesday.
The benefits under the Remission of Duties and Taxes on Exported Products were introduced on January 1, 2021, but ended on February 5 this year.
They will now be applicable for all eligible exports from June 1, covering sectors including textiles, chemicals, pharmaceuticals, cars, agriculture, and food processing, the ministry said in a statement.
"Their reinstatement is expected to provide a level playing field for exporters across sectors," the statement said, adding the scheme would use a digital platform "to ensure transparency and efficiency".
Total disbursements under the programme exceeded 579.77 billion Indian rupees ($7 billion) as of March 31, the ministry said.
The benefits were earlier paused to review the support required by exporters, an official who did not want to be named told Reuters.
"In the current environment, the government has felt the need to continue to give such benefits," the official said.
The announcement comes days after India clinched a trade agreement with Britain and as it races to seal a trade deal with the U.S. before the end of the 90-day pause on hefty additional import tariffs imposed by U.S. President Donald Trump.
($1 = 85.2520 Indian rupees)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
27 minutes ago
- The Independent
Tesco sales accelerate despite ‘intensely competitive' grocery market
Tesco has revealed stronger sales over the latest quarter despite an 'intensely competitive' UK grocery market. The UK's largest supermarket chain said it has increased its market share further after investing more in pricing to bring in more customers. The company said group sales grew by 4.6%, on a like-for-like basis, to £16.4 billion for the 13 weeks to May 24. This was buoyed by growing demand for own-brand and premium products, with sales of its Finest range up 18% year-on-year. This was supported by the launch of 350 new own-brand products during the quarter, as shoppers continue to turn more frequently to supermarket own-brands over branded rivals. As a whole, the business saw food sales grow by 5.9%, while non-food sales, excluding toys, rose by 6.2% amid a boost from new ranges and warmer weather. Tesco stressed that growth has come as it maintained its 'strong price positioning' relative to its rivals, continuing to invest in its Aldi Price Match scheme and around 9,000 Clubcard price deals each week on its loyalty scheme. It comes amid continued pressure on pricing from rival supermarkets, with Asda slashing prices this year in a bid to help turn around its fortunes. In April, Tesco said it expects to make as much as £400 million less in profit this financial year due to heightened competition. Ken Murphy, chief executive of Tesco, said: 'We are pleased with our performance across the first quarter. 'Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the group. 'The market remains intensely competitive, and we are committed to ensuring customers get the best value in the market by shopping at Tesco.'
The Independent
27 minutes ago
- The Independent
Trump pulling US personnel from Middle East amid rising tensions with Iran
Donald Trump said he was withdrawing some of the American personnel deployed in the Middle East because it could be a 'dangerous place' amid rising tensions. The State Department said it had ordered the departure of all non-essential personnel and their dependents from its embassy in Baghdad. Simultaneously, a US official said, defence secretary Pete Hegseth had authorised the voluntary departure of military dependents from countries across the region, including Bahrain and Kuwait. American soldiers in the region were not affected by this order, however. The decision comes amid heightened tensions as Mr Trump's push to reach a deal with Iran to halt its nuclear programme is deadlocked and intelligence suggests Israel is making preparations for a strike against Tehran's nuclear facilities. 'They are being moved out because it could be a dangerous place, and we'll see what happens,' Mr Trump told reporters on Wednesday. 'We've given notice to move out.' Asked if anything could be done to de-escalate tensions in the region, particularly with Iran, the president said: 'They can't have a nuclear weapon. Very simple – they can't have a nuclear weapon.' News of the Baghdad evacuation drove oil prices up by more than 4 per cent. Oil futures climbed $3, with Brent crude futures at $69.18 a barrel. The US maintains a military presence across the oil-rich region, with bases in Iraq, Kuwait, Qatar, Bahrain and the UAE. A US official told Reuters that the State Department was 'set to have an ordered departure for the embassy in Baghdad'. 'The intent is to do it through commercial means, but the US military is standing by if help is requested,' the officials said. Iraq 's state news agency reported, citing a government official, that Baghdad hadn't recorded any security indication warranting an evacuation. Sources in Iraqi and US governments did not explain what security risks had prompted the decision, although heightened tensions with Iran were widely speculated to be a reason. The sixth round of nuclear talks between Iran and the US is scheduled to happen over the weekend in Oman, with Tehran expected to hand over a counterproposal after rejecting an offer by Washington. Iran says it does not plan to build a nuclear weapon and is only interested in peaceful use of its nuclear programme. The US, though, wants Tehran to stop uranium enrichment entirely. Speaking on the Pod Force One podcast on Monday, Mr Trump said he was growing 'less confident' about getting a deal with Iran. It wasn't clear, he said, that Tehran would accept the key US demand to stop enriching uranium. 'I don't know. I did think so, and I'm getting more and more – less confident about it,' the president said. Iranian defence minister Amir Aziz Nasirzadeh warned that 'the situation may escalate into conflict' if negotiations with the US failed. 'If a conflict is imposed on us,' he warned on Wednesday, 'all US bases are within our reach, and we will boldly target them in host countries'. Tensions in the Middle East are also rising due to Israel 's war on Gaza. Israel and Iran exchanged fire twice last year – the first direct attacks between the region's most entrenched enemies – with missiles and war drones hurtling across Iraqi airspace. Strategic experts and former officials said Israel could consider taking matters into its own hands if nuclear talks with the US didn't yield a favourable outcome. Israeli prime minister Benjamin Netanyahu has repeatedly warned that a flawed agreement would be more dangerous than no deal at all. Mr Trump recently revealed he had cautioned Mr Netanyahu against taking unilateral action, such as a military strike, which could jeopardise the ongoing negotiations with Tehran.
Reuters
36 minutes ago
- Reuters
UK accounting watchdog fines KPMG $1.7 million for Carr's Group audit breaches
June 12 (Reuters) - The British accounting watchdog imposed a penalty of 1.25 million pounds ($1.7 million) on audit firm KPMG LLP on Thursday as a result of an investigation into the financial audit of UK manufacturing firm Carr's Group (CARRC.L), opens new tab. KPMG and audit engagement partner Nick Plumb failed to ensure compliance with applicable independence requirements, the Financial Reporting Council said. "In this case, whilst the quality of the audit work performed by the two firms is not brought into question, the breaches were serious," FRC Deputy Executive Counsel Jamie Symington said in a statement published on its website. ($1 = 0.7374 pounds)
