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Indian Tobacco Association on Thursday said it has urged the government to include tobacco under the tax rebate scheme RoDTEP (Remission of Duties and Taxes on Exported Products) with an aim to encourage exports from the sector.
The government on August 17 announced rates of tax refunds under the export promotion scheme RoDTEP for 8,555 products, such as marine goods, yarn, dairy items. Under the RoDTEP, various central and state duties, taxes, and levies imposed on input products, among others, would be refunded to exporters.
The association said that India is well-positioned to become a major player in the global tobacco market if it can harness the emerging opportunities through price competitiveness.
However, steep increases in the cost of cultivation, transportation, and logistics have adversely impacted the price competitiveness of Indian tobacco, it said in a statement.
As there is no level playing field in the international market, India's exports of unprocessed tobacco have fallen sharply, it claimed.
"Indian Tobacco Association appeals to the government to include tobacco in the RoDTEP scheme and encourage exports through aggressive promotion schemes," it said.
The global competitiveness of the Indian tobacco industry has also been severely affected due to factors like subsidies being provided to tobacco in countries like Zimbabwe, Tanzania, the EU, and the US.
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