As the Centre announced tax refund rates for the Remission of Duties and Taxes on Export Products (RoDTEP) scheme on Tuesday, it brought relief to some exporters. However, it has irked others as some sectors do not come under the ambit of the scheme.

According to the RoDTEP guidelines released by the government, sectors such as steel, organic and inorganic chemicals as well as pharmaceuticals have not been included in the scheme. Other ineligible categories include exports by advance authorisation holders, special economic zones and export-oriented units (EOUs).

According to commerce secretary BVR Subhramanyam, these sectors have been performing well, which is the reason why they have been excluded. He also said that the scheme will be reviewed regularly, and some items may be excluded or included, depending on the situation. RoDTEP will cover 8,555 items.

The industry, however, has a different view. ÔÇ£The pharmaceuticals sector has the strategic advantage and India needs to leverage the potential (of the sector) that is doing well, and in which India has competitive advantage. Especially at a time when (pharma) exports are doing well. Competition is also increasing in the sector,ÔÇØ said Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance (IPA).

Jain also said that the pharmaceutical industry will share its concerns with the government as well. An industry executive raised concerns, citing that over the last one year, consultants were hired and rates fixed based on the data submitted to a government panel by the industry, after which some sectors were made ineligible. However, experts believe that one of the reasons for excluding some sectors could be due to budgetary constraints.