The RoDTEP Scheme Guidelines and Rates were recently published by the Centre (Remission of Duties and Taxes on Exported Products). RoDTEP tariffs will apply to 8555 tariff lines. In 2019, the Union Government launched the RoDTEP plan to encourage exports by enabling reimbursement of taxes and levies that are not exempted or reimbursed under any other scheme. Embedded customs and taxes now vary from 1-3 percent and are not reimbursed under any other system. These taxes will be refunded in the form of duty credit/electronic scrip under the plan. It’s a reform based on the widely held belief that taxes and charges should not be exported, and that taxes and levies imposed on exported goods should either be exempted or refunded to exporters. The plan adheres to World Trade Organization (WTO) guidelines. It combines the existing Merchandise Export from India Scheme (MEIS) with State and Central Taxes and Levies Rebate (RoSCTL). MEIS: It’s a programme that gives exporters incentives or prizes to counteract infrastructure inefficiencies with the goal of promoting the manufacturing and export of recognised items. RoSCTL: The textile ministry announced the programme to reduce the impact of different state and national taxes on garment exports.
RoDTEP support will be offered to qualifying exporters at a pre-determined rate based on the value of their freight on board (FOB). A value cap per unit of the exported product will apply to rebates on specific export items. Marine, Agriculture, Leather, Gems & Jewellery, Automobile, Plastics, Electrical / Electronics, and Machinery are some of the industries that profit from the scheme. Certain taxes, such as state taxes on power, oil, water, and education cess, are not included in the present schemes. Such taxes are also planned to be included in the indicative list under RoDTEP, making the programme comprehensive. As a result, it is a reform in which the government is attempting to strengthen domestic industry and make it more competitive.
Source: Press Information Bureau