RoDTEP scheme for exporters gets approval
NEW DELHI: The Central government on Friday approved a tax reimbursement scheme worth Rs 50,000 crore for exporters, provided them with the much-needed relief. The decision in this regard was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi in the national capital.
“The reimbursement of taxes — such as duty on power charges, VAT on fuel in transportation, farm sector, captive power generation, mandi tax, stamp duty and central excise duty on fuel used in transportation — would make Indian products competitive in global markets,” Ministry of Commerce and Industry tweeted.
The measures are in compliance with the World Trade Organisation’s norms, it mentioned.
The sectors and products under the Remission of Duties and Taxes on Export Products (RoDTEP) scheme will be notified in a phased manner, and benefits under the Merchandise Export from India (MEIS) for those sectors and items will be withdrawn.
Briefing the media about this decision, commerce minister Piyush Goyal on Friday said that with the rolling out of this new scheme, MEIS will be “phased out”.
The decision came after a World Trade Organisation dispute resolution panel ruled that MEIS was not in compliance with global trade rules.