RoDTEP Scheme : Extended Benefits:
The Government recently extended export benefits under the RoDTEP scheme for one more year.
- Remission of Duties or Taxes on Export Products (RoDTEP) scheme was introduced by the Government as a duty remission scheme on exports and is being implemented from 1st January 2021.
- It was enforced to repeal and reduce taxes for exported products, thereby encouraging the conditions of exported and increasing the amount of exports in the country.
- The scheme will be administered by the Department of Revenue, Ministry of Finance.
- The Scheme provides a mechanism for reimbursement of taxes, duties and levies, which are currently not being refunded under any other mechanism at the central, state and local level but which are incurred by the export entities in the process of manufacture and distribution of exported products.
- This does not only include the direct cost incurred by the exporter but also the prior stage cumulative indirect taxes on goods.
- It is a WTO-compliant scheme and follows the global principle that taxes/duties should not be exported.
- RoDTEP replaced the Merchandise Export Incentive Schemes (MIES), in response to the US challenging the Indian export subsidies under the MEIS at the WTO.
- Rebate under the scheme is provided to eligible exporters as a percentage of the freight on board (FOB) value of exports.
- Remission is issued in the form of transferrable e-scrips (type of certificates with some monetary value) maintained in an electronic credit ledger by the CBIC (Central Board of Indirect Taxes and Customs).