Q. Consider the following statements about Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme:
1. It is based on the principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters.
2. The scheme is applicable only to labour-intensive sectors such as agriculture, leather, gems & jewellery and textiles.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Explanation: What is the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme?

  • The RoDTEP Scheme is based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters.
  • The scheme rebates/refunds the embedded Central, State and local duties/taxes to the exporters that were so far not being rebated/refunded.

What changes have been made to the scheme?

  • The RoDTEP Scheme has now been expanded to the pharmaceuticals, chemicals and iron & steel sectors.
  • Until now, the scheme was applicable to labour-intensive sectors such as agriculture, leather, gems & jewellery and textiles.
  • These changes have been made against the backdrop of exports facing headwinds due to recessionary trends recession in some of the developed markets and supply chain disruptions triggered by the Russia-Ukraine conflict.

Source: ForumIAS

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