In the News
the government decided to extend the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme to the pharmaceuticals, chemicals and iron & steel sectors with effect from December 15.
- The move is aimed at boosting exports at a time they have been impacted due to the global economic slowdown and demand slowdown in major markets such as China and the European Union.
About RoDTEP scheme
- It was introduced in January 2021 to replace an earlier merchandise export incentive scheme
- The RoDTEP scheme rebates or refunds the embedded central, state, and local duties and taxes to the exporters that were so far not being refunded.
- the rebate is issued as a transferable electronic scrip by the Central Board of Indirect Taxes and Customs.
- It is based on the globally accepted principle that taxes should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters.
- It is meant to provide a ‘zero rating’ of exports or ensure that no domestic taxes are added to goods meant for export.
Source:TH
