“The abrupt and unexpected reduction in the RoDTEP rates and the notified value caps for all HS lines by 50% has come as a big surprise and a huge shock for the exporters,” said Shaleen Toshniwal, Chairman of MATEXIL (Manmade and Technical Textiles Export Promotion Council).
The DGFT (Directorate General of Foreign Trade) has reduced RoDTEP rates and the notified value caps for all HS lines by 50% vide Notification No. 60/2025-26 dated February 23, 2026.
“The implementation of this notification with immediate effect will have an adverse impact on exports of manmade fibre textiles and technical textiles, as it will significantly affect their competitiveness,” said Shri Toshniwal .
The RoDTEP (Remission of Duties and Taxes on Exported Products) scheme was introduced with the objective of neutralizing embedded central, state, and local taxes and levies—including prior-stage cumulative indirect taxes on goods and services used in the production and distribution of exported products—that are not otherwise refunded or credited and remain embedded in export goods.
“At a crucial juncture, when exporters are passing through unprecedented challenges, turbulence & uncertainty in global markets and are finding it difficult to sustain operations, this reduction has further aggravated their problems,” the MATEXIL Chairman added.
Shri Toshniwal further pointed out that the RoDTEP Committee constituted by the Government is presently reviewing the existing RoDTEP rates and while this review exercise is underway, the unexpected reduction has caused serious concern and uncertainty among exporters of manmade fibre textiles and technical textiles.
He urged the Government to reinstate the original RoDTEP rates and value caps and continue with the same until the revised rates are formally notified.