New Delhi (NVI): With an aim to enhance Indian exports at the International markets, the government today approved the scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) for exporters.
Under this scheme, a mechanism would be created for reimbursement of taxes/duties/levies, at the central, state and local level, which are currently not being refunded under any other mechanism, but which are incurred in the process of manufacture and distribution of exported products, the Cabinet Committee on Economic Affairs said in a statement.
To make Indian exports cost-competitive and create a level playing field for exporters in the International market, this scheme is going to give a boost to the domestic industry and Indian exports, the statement added.
“Items will be shifted in a phased manner from existing scheme MEIS to RoDTEP with proper monitoring & audit mechanism,” CCEA said adding the refunds under the RoDTEP scheme would be a step towards “zero-rating” of exports, along with refunds such as Drawback and IGST.
It added, “This would lead to cost competitiveness of exported products in international markets and better employment opportunities in export-oriented manufacturing industries.”
In line with the vision of Prime Minister, various export-oriented industries are being reformed and introduced to better mechanisms so as to increase their productivity, boost exports and contribute to the overall economy.
Under the Scheme, an inter-ministerial Committee will determine the rates and items for which the reimbursement of taxes and duties would be provided. In line with “Digital India”, refund under the Scheme, in the form of transferable duty credit/electronic scrip will be issued to the exporters, which will be maintained in an electronic ledger. The Scheme will be implemented with end to end digitization, the statement added.
