Source: Livemint and The Hindu
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What is the News?
The government of India has notified the rates and norms for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
About RoDTEP Scheme:
- Launched by: Ministry of Commerce & Industry
- Which scheme is it replacing? The RoDTEP scheme is replacing the earlier Merchandise and Services Export Incentive Schemes (MEIS and SEIS) that were in violation of WTO norms.
- Aim: To reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.
- The refund under the scheme shall not be available in respect of duties and taxes already exempted or remitted or credited.
- Implementation: The refund under the scheme will be credited in an exporter’s ledger account with the customs. It will be used to pay basic duty on imported goods. The credits can also be transferred to other importers.
Key Features of the Scheme:
- Coverage: The scheme covers over 8,555 tariff products, accounting for about 75% of traded items and 65% of India’s exports.
- Rates: The tax refund rates will vary between 0.5% and 4.3% of the export value of goods.
- The lowest rate is offered on items like chocolates, toffees and sugar confectionery
- Yarns and fibres have been granted the highest rate.
- Sectors Included: The scheme covers sectors such as marine, agriculture, leather, gems and jewellery automobile, plastics, textiles, electronics among others.
- Sectors Excluded: Pharmaceutical, steel and chemicals have been kept out of the purview of the scheme. Products manufactured at export-oriented units and special economic zones have also been excluded from the scheme for the time being.