Latest news with #DTA
Mint
27-05-2025
- Business
- Mint
Level playing field: Government restores duty, tax benefits for certain categories of exporters to boost competitiveness
ew Delhi: The government has decided to restore certain tax and duty benefits for specified categories of exporters in a move aimed at reviving the competitiveness of India's overseas trade. 'The Government of India has announced the restoration of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exports made by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs),' the commerce and industry ministry said in a statement on Tuesday. 'The benefits will be applicable for all eligible exports made from 1 June.' The reinstatement comes about four months after the benefits for these categories were suspended, causing concern among exporters reliant on duty-free schemes. The decision is part of a broader effort to ensure a level playing field for all exporters, irrespective of the route they use. The RoDTEP scheme had been operational for exports from domestic tariff areas (DTA) even after the benefit was withdrawn for AA, SEZ and EOU shipments on 6 February this year. The RoDTEP scheme, introduced in January 2021 after the World Trade Organization ruled against India's earlier export incentive programmes, is meant to neutralise the burden of non-creditable taxes and levies—such as electricity duties and mandi fees—that are not refunded through other mechanisms. Its design is WTO-compliant, and it is entirely digital, allowing for direct transfer of benefits to exporters. Exporters said the restoration offers relief when global demand remains uneven and domestic exporters are coping with thin margins. For small and medium enterprises (SME), which often operate on tight margins, such financial support can make a meaningful difference in pricing their products competitively. "This is a much-needed relief for the SME export community. The withdrawal of RoDTEP benefits earlier this year had disrupted pricing models for many small and mid-sized exporters, especially those operating through SEZs and under advance authorisation. Restoring these incentives will help us compete more confidently in global markets," said Vinod Kumar, president of the India SME Forum. According to government data, India disbursed over ₹ 57,976 crore in RoDTEP benefits from January 2021 to March 2025. The government has earmarked ₹ 18,233 crore for the scheme in FY26. The benefits will now support 10,780 trade lines for DTA exports and 10,795 product lines for AA, SEZ, and EOU shipments, suggesting that the government intends to ensure broad sectoral support. While industry leaders largely welcomed the move, some of them said the effectiveness of the reinstatement will depend on timely reimbursements and clarity in claim processing. The decision is seen as a much-needed correction in policy, reaffirming India's intent to create a predictable and equitable export regime amid tightening global competition, said Arun Kumar Garodia, former chairman of the Engineering Export Promotion Council. According to Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI), the government's stop-and-start approach to RoDTEP undermines the scheme's very purpose and its repeated withdrawal for key export categories creates serious uncertainty. 'Exporters, especially SMEs, find it difficult to price products or commit to long-term contracts when they cannot rely on consistent support," Srivastava said. "The reinstatement of benefits from 1 June is a welcome step, but it also raises a fundamental question—why were they cut off mid-cycle in the first place? If India wants to position itself as a predictable and competitive export hub, RoDTEP coverage must be uninterrupted for at least five years. Frequent policy shifts erode trust and hurt our export credibility in global markets.' Micro, small and medium enterprises contribute about 45% of India's total exports, playing a key role in sectors such as textiles, engineering goods, pharmaceuticals, and gems & jewellery. The total number of MSMEs registered on the Udyam Registration Portal and Udyam Assist Platform was almost 59 million as of 31 January 2025. From 1 July 2020 to 31 January 2025, 71,178 units were deregistered because they had shut down. The data also indicated that 203 million people were employed in MSMEs as of 16 July 2024.
GMA Network
27-05-2025
- Business
- GMA Network
PH, Hong Kong begin talks on double taxation avoidance
The Philippines and Hong Kong have begun the initial round of negotiations for the Comprehensive Avoidance of Double Taxation Agreement (DTA). In a statement on Tuesday, the Bureau of Internal Revenue (BIR) said Commissioner Romeo Lumagui Jr. led the Philippine Negotiating Panel in the initial round of talks for the DTA with the Hong Kong Special Administrative Region (SAR). The Hong Kong SAR delegation was headed by Lumagui's counterpart, Inland Revenue Department Commissioner Benjamin Chan Sze-wai. The initial round of DTA negotiations was held from May 21 to 23, 2025, at the Inland Revenue Centre in Kowloon, Hong Kong. The BIR said three-day discussions reaffirmed the Philippines' commitment to strengthening international tax cooperation, fostering economic partnerships, and ensuring fair and equitable taxation on cross-border income. The Bureau of Internal Revenue (BIR) said Commissioner Romeo Lumagui Jr. and Hong Kong SAR Inland Revenue Department Commissioner Benjamin Chan Sze-wai. Photo from BIR 'We recognize the importance of the DTA in fostering economic growth, promoting investment, and providing clarity for businesses and individuals operating in both jurisdictions. The BIR is open to all international discussions that aims to promote the economic situation of all parties. We are here to find a win-win solution for all our international partners,' said Lumagui. The taxman said the inaugural round of negotiations saw both the Philippine and Hong Kong sides 'engage in constructive discussions and exchange views on key provisions of the proposed treaty,' which included mechanisms to prevent double taxation, tax relief measures, and frameworks for mutual cooperation between the two tax authorities. 'These matters require further deliberation to reach a comprehensive and equitable outcome that serves the best interests of both the Philippines and Hong Kong,' said Lumagui. The BIR said the Philippine and Hong Kong SAR negotiating panels have agreed to hold a second round of negotiations at a mutually convenient date to resolve outstanding issues and finalize the agreement. —VAL, GMA Integrated News
Fibre2Fashion
24-05-2025
- Business
- Fibre2Fashion
Cambodia set to boost trade & investment with Laos, Philippines
As double taxation agreements (DTAs) between Laos and the Philippines with Cambodia are set to enter into force soon, Cambodian economists are optimistic that foreign direct investment (FDI) from the two countries and bilateral trade will rise. Cambodia's general department of taxation believes the DTAs are not designed just to avoid double taxation; these also build investor confidence and certainty by offering several benefits. As double taxation agreements (DTAs) between Laos and the Philippines with Cambodia are set to enter into force soon, Cambodian economists are optimistic that FDI from the two countries and bilateral trade will rise. Cambodia has completed technical negotiations on a DTA with Myanmar and is now negotiating DTAs with six countries: the United Arab Emirates, Japan, Morocco, France, Qatar and Azerbaijan. The benefits include clear tax rules between the contracting states, reduction or elimination of certain taxes, the prevention of tax discrimination between domestic and foreign companies, mechanisms for resolving tax disputes and systems for information exchange to combat tax evasion, according to a domestic media outlet. At present, Cambodia has DTAs with 11 countries and jurisdictions. Cambodia has completed technical negotiations on a DTA with Myanmar and is currently negotiating DTAs with six countries: the United Arab Emirates, Japan, Morocco, France, Qatar and Azerbaijan. Fibre2Fashion News Desk (DS)
Associated Press
18-05-2025
- Business
- Associated Press
ELEKS has been Selected as a Government Vendor to Deliver Ukraine's eExcise System
ELEKS selected to build Ukraine's eExcise system—digitally transforming alcohol and tobacco excise tracking for greater transparency and government control. LONDON, UNITED KINGDOM, UNITED KINGDOM, May 18, 2025 / / -- ELEKS has been selected from numerous local and international software companies to implement a transformational digital initiative for Ukraine's government. The eExcise system will regulate the circulation of alcoholic beverages and tobacco products in Ukraine, aiming to increase monitoring and control in these sectors. ELEKS has become a software partner of choice for delivering Ukraine's electronic excise stamp system, eExcise, following a competitive tender process conducted by the Digital Transformation Activity (DTA). Set to replace traditional paper excise stamps, eExcise will introduce electronic stamps with unique codes, enhancing transparency in the excise goods market. The system will allow licensed producers to generate and apply DataMatrix-coded stamps directly onto alcohol and tobacco products, streamlining the process and reducing bureaucracy. More information about the project. Key features of eExcise: — Electronic activation of stamps upon tax payment — Improved government oversight of excisable goods — Potential increase in budget revenues through reducing the shadow market — Consumer verification of product information via the Diia app The eExcise project is a collaborative effort of the Ministry of Digital Transformation, the Ministry of Finance, and the State Tax Service of Ukraine. It is supported by USAID and UK Dev through the Digital Transformation Activity, with East Europe Foundation and the Institute of Analytics and Advocacy as implementing partners. 'This initiative, set to be developed by the end of 2025, promises to digitally transform the alcohol and tobacco excise processes in Ukraine, address inefficiencies in this field, and thus significantly influence the Ukrainian economy. In March, the ELEKS team successfully launched the MVP of the eExcise system, which was opened for public testing. This marks a big step in modernising alcohol and tobacco industry regulations.', commented Vladyslav Hapanovych, Head of the Engineering Division, US Gov Projects at ELEKS. ELEKS delivers comprehensive solutions for the public sector, assisting governments and institutions in their digital transformation journeys. The company specialises in developing highly efficient systems for document management, task tracking, data management, cybersecurity, and business process optimisation, all designed to enhance the quality of public services. With extensive experience collaborating with government entities across various countries, ELEKS empowers the public sector to improve transparency, security, and efficiency through modern technologies and innovative strategies. For over 20 years, the company has worked with Teleologica on eGov projects in the UK and Crown Dependencies, modernising excise, tax, and transport systems. About the eExcise project The eExcise is an innovative electronic excise stamp system being developed for Ukraine to replace traditional paper stamps for alcohol and tobacco products. Designed to enhance transparency and efficiency in the excise goods market, the system will use unique DataMatrix codes for improved government oversight, the potential increase in budget revenues, and consumer verification via the Diia app. About ELEKS ELEKS is a trusted partner for guaranteed software engineering excellence, quality, and transparency every step of the way. The company has provided expert software engineering and consultancy services for over 30 years. Its talent pool of over 2,000+ specialists across Europe, the U.S., and the U.K. covers niches from custom software development to product design and technology advisory, making it the partner of choice for many of the world's leading enterprises, SMEs, and technology challengers. Solomiya Yakymiv ELEKS Software UK Limited +44 2045830843 [email protected] Visit us on social media: LinkedIn Instagram Facebook YouTube X Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
Business Insider
17-05-2025
- Business
- Business Insider
U.S. diplomatic push for Starlink in Gambia raises eyebrows over pressure tactics
The U.S. government's push to secure market access for Elon Musk's Starlink in Gambia has come under scrutiny after revelations that American diplomats allegedly applied pressure on Gambian officials to fast-track the company's license approval. The U.S. government has allegedly pressured Gambian officials to expedite licensing for Starlink, a satellite internet service by Elon Musk's SpaceX. Critics have raised concerns over the ethics of leveraging aid for private corporate benefits, marking these actions as a form of crony capitalism. As of May 2025, Starlink remains unlicensed in The Gambia, prompting questions about the impact of such measures on African partnerships. The campaign, detailed in a 2025 ProPublica investigation, involved at least seven Gambian ministries and included what officials described as veiled threats to withhold a $25 million infrastructure project if Starlink was not licensed. At the center of the dispute was Communications Minister Lamin Queen Jammeh Jabbi, whose ministry had raised regulatory concerns about Starlink's application. In February 2025, U.S. Ambassador Sharon Cromer met with Jabbi to push for approval, citing the multimillion-dollar U.S.-funded electrical system upgrade. ' The implication was that they were connected,' said Hassan Jallow, Jabbi's deputy, in an interview with ProPublica. ' It felt like pressure. ' The high-level diplomatic push intensified after a meeting between Jabbi and Starlink executives in Washington ended without a deal. Shortly after, Cromer wrote directly to President Adama Barrow, urging him to 'facilitate the necessary approvals for Starlink to commence operations.' Observers say the campaign reflects a deeper tension in U.S. foreign policy, balancing commercial interests with developmental partnerships. Critics argue that the U.S. State Department's involvement crossed a line, leveraging aid to benefit a private company with close ties to politically influential figures. 'If this were done by another country, we absolutely would call this corruption,' said Kristofer Harrison, a former State Department official. Kenneth Fairfax, another ex-diplomat, described the effort as ' crony capitalism.' Starlink's market push in Africa Starlink, operated by Elon Musk's SpaceX, is rapidly expanding its global footprint, with more than 6,750 satellites in orbit as of early 2025. Its recent launch in the Democratic Republic of Congo (DRC) marks a significant step in its African push, reinforcing Starlink's growing dominance on the continent. With the addition of the DRC, the company now operates in 21 African countries. The Gambia, with its underdeveloped broadband infrastructure, represents a strategic gateway for Starlink's ambitions in West Africa. The U.S. has framed Starlink's entry as part of the broader Digital Transformation with Africa (DTA) initiative, a White House-led effort to improve internet access across the continent. But critics say the approach in Gambia reveals a more aggressive, behind-the-scenes playbook that risks undermining the sovereignty of smaller nations. As of mid-May 2025, Starlink remains unlicensed in The Gambia, and government officials have not publicly indicated when or whether approval will be granted. For now, the episode has sparked concern over whether diplomacy intended to support development is being repurposed to serve powerful private interests, and what that means for U.S. partnerships across Africa.
