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Source: The post is based on the article “Remission of Duties and Taxes on Exported Products(RoDTEP) Scheme gets extended to Chemicals, Pharmaceuticals and Articles of Iron & Steel” published in PIB on 7th December 2022
What is the News?
The Department of Commerce has decided to expand the scope of the Remission of Duties and Taxes on Exported Products(RoDTEP) Scheme to include iron & steel, chemicals and pharmaceuticals.
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.