Govt announces tax refund rates under RoDTEP

In an effort to encourage exports, the government announced tax refund rates for 8,555 products under the Remission of Duties and Taxes on Exported Products (RoDTEP) export promotion scheme, including marine goods, yarn, and dairy products. According to a top government official, the government has set aside Rs 12,454 crore in the fiscal year 2021 for refunds under the RoDTEP scheme. RoDTEP is also compliant with the World Trade Organization (WTO). Under the RoDTEP, exporters would be refunded various central and state duties, taxes, and levies, among other things. In FY22, Commerce Secretary B V R Subrahmanyam asserted that Rs 19,400 crore would be available for both the RoDTEP and the Rebate of State and Central Taxes and Levies (RoSCTL). For the export of garments and apparel, the RoSCTL scheme was announced. The RoDTEP scheme will cost Rs 12,454 crore, while RoSCTL will cost Rs 6,946 crore. Since the RoDTEP scheme began on January 1, additional funds will be provided on a pro-rata basis from January to March. Steel, chemicals, and pharmaceuticals, on the other hand, would not benefit from RoDTEP because they have thrived without it. He explained that taxes such as duty on power charges, VAT on transportation fuel, farm sector, captive power generation, mandi tax, stamp duty, and central excise duty on transportation fuel would be reimbursed, allowing Indian products to compete more effectively in global markets. For various sectors, tax refund rates range from 0.5%to 4.3%. The scheme rebate would not apply to duties and taxes that had already been exempted, remitted, or credited. RoDTEP assistance will be available to eligible exporters at a predetermined rate based on the value of their freight on board (FOB). Rebates on some export products will be capped at a certain amount per unit of the exported product. Customs will implement it through a simplified IT system. It will be issued by the Central Board of Indirect Taxes and Customs (CBIC) in the form of a transferable duty credit/ electronic scrip (e-scrip), which will be kept in an electronic ledger. The scheme covers job-creating industries such as marine, agriculture, leather, gems, and jewellery. Automobiles, plastics, electrical/electronics, and machinery are all receiving support. RoDTEP scheme guidelines were also announced by the ministry. Export goods subject to a minimum export price, restricted and prohibited items, deemed exports, supplies of goods manufactured by domestic tariff area units to SEZs, and products manufactured or exported by units located in special economic zones are all excluded from the benefits, according to the guidelines. Image Source Also read: Govt ready to do everything to revive economy: N Sitharaman