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RoDTEP Scheme: The Central Government has fixed new rates on 8,555 products based on the recommendation of a committee headed by former Commerce and Home Secretary GK Pillai. Due to this decision, the loss of exporters will be less than before.
New Delhi. The Central Government has announced new rates and guidelines under the Remission of Duties and Taxes on Exported Products- RoDTEP. This decision of the government is expected to boost exports. Announcing the rates for the RoDTEP scheme, Commerce Secretary BVR Subramaniam said that the scheme will boost exports. In addition, with the increase in competition at the global level, the quality will also increase.
The central government has fixed new rates on 8,555 products based on the recommendation of a committee headed by former commerce and home secretary GK Pillai.
The Finance Ministry had approved the exemption of duties and taxes on Export Product (RoDTEP) scheme in March, 2020 for reimbursement of taxes and duties to boost the country’s declining exports. But the exporters were not able to take advantage of this due to the lack of clear tax exemption rates. Now the central government has decided to extend the benefits of the tax refund scheme RoDTEP to all export goods with effect from January 1, 2021.
This decision will reduce the loss of exporters
Exporters will be refunded a number of central, state and local duties and taxes under the Export Excise Scheme (RoDTEP). This will reduce the loss of Indian exporters. The refund will be credited directly to the books of the exporters along with the customs duty. Also customs duty will be paid on imported goods. Apart from this, the credited amount can also be transferred to other importers.
Here is the new rate of refund
According to the notification issued on Tuesday by the Directorate General of Foreign Trade (DGFT), operated under the Central Government, exporters can take advantage of the RoDTEP scheme from January 01, 2021. The rates for different sectors are 0.5 percent, 2.5 percent and 4 percent. Apart from this, the government has also issued notification of the guidelines of the scheme.
What is RoDTEP Scheme
Under the Remission of Duties and Taxes on Exported Products (RoDTEP) on export products, central and state duties are refunded to promote exports. The Center has announced the refund rates today, almost two years after the scheme was announced. The government has released Rs 12,400 crore for this. The RoDTEP rates will be considered effective for 8,555 products.