DGFT circular dated 23rd February 2026 surprised exporters as it in one stroke reduced RoDTEP benefit by 50%. This came as a surprise as there was no pre-warning this will happen. An immediate clarification was issued by Government that this will not impact agriculture exports and processed foods export (I am sure some more clarifications will come in soon)
India is a land of surprises when it comes to taxation and policy matters (Trumpism always!). Exporters have factored this incentive when pricing for their exports now all of a sudden they are left dry either taking a hit on margins or re-negotiate prices with buyers both of which will have an impact on trade.
As such trade and industry face too many variables from a demand, supply, logistics, competition, geo-political perspective. With this add on instability on taxes there is a big challenge.
Please please bring in stability in taxation and policy matters or atleast have a discussion before implementing policy matters, industry & trade is handled by mature & well informed persons who will provide rationale solutions to the bureaucracy. Please listen also.
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