RoDTEP : Tax Remission Benefits For Sugar Exports
The Indian government is exploring options to reinstate tax remission benefits for sugar exports, which were excluded from the Remission of Duties and Taxes on Export Products (RoDTEP) scheme in June 2022.
- Sugar was moved to the ‘restricted’ category as a precautionary measure to enhance domestic availability and prevent a surge in prices.
- The sugar industry has appealed to reclassify sugar into the ‘free’ category with certain conditions, such as obtaining permissions from the Directorate of Sugar for exports.
- Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been introduced with the aim of neutralizing the taxes and duties incurred on exported goods that are not credited, remitted, or refunded in any manner, and thus, remain embedded in the export goods.
- The scheme provides a rebate for all hidden central, state, and local duties, taxes, and levies on exported goods that have not been refunded under any other existing scheme.
- The scheme is designed to be compliant with World Trade Organization (WTO) principles.
