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Extension of Remission of Duties and Taxes on Export Products (RoDTEP) scheme

Extension of Remission of Duties and Taxes on Export Products (RoDTEP) scheme IAS TOPPERS

Union Minister of Commerce & Industry recently announced the extension of Remission of Duties and Taxes on Export Products (RoDTEP) Scheme support to additional export sectors.

Extension of Remission of Duties and Taxes on Export Products (RoDTEP) scheme
[Ref- Economic Times]

Key Additions to the Scheme:

  • The Government of India announced extension of the RoDTEP Scheme support to additional export sectors due to growing contribution in India’s exports.
  • These represent approximately 25% of the exports, amidst global economic uncertainties and supply chain disruptions.

Additions to RoDTEP Scheme:

  1. Advance Authorisation (AA) holders
  2. Export Oriented Units (EOU)
  3. Special Economic Zones (SEZ) export units

Benefits of the extention:

  • This extension is aimed at enhancing India’s export competitiveness in international markets.
  • Key sectors such as Engineering, Textiles, Chemicals, Pharmaceuticals & Food Processing and many others stand to benefit from the measure.
  • Support to crucial export sectors will create employment opportunities and contribute to overall economic growth, aligning with the vision of building an Aatmanirbhar Bharat.
  • The proactive measures being taken, including efforts to negotiate new FTAs, will further accelerate India’s journey towards achieving $ One trillion merchandise export levels.

About Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme:

  • It is a key initiative by the Department of Commerce, which aimed at refunding various embedded taxes and duties on exported products.
  • It aims to provide rebates on Central, State, and Local duties or taxes or levies not refunded by other existing schemes.
  • It would compensate for hidden taxes at various levels, ensuring global competitiveness for Indian goods.
  • The scheme is in compliance to the World Trade Organization (WTO) and aligns with the principle that taxes or duties should not be exported.
  • VAT (Value-added tax) and Excise duty on transportation fuel, electricity duty, Mandi Tax, Municipal Taxes, Property Taxes, Stamp duty on export documents, etc. are covered.
  • It is fully administered by the Department of Revenue, while is implemented by the Remission of Duties and Taxes on Export Products Policy Committee (RPC) chaired by DGFT (Directorate General of Foreign Trade).
  • It includes representatives from the Department of Revenue, Department of Commerce, line ministries, and sector experts.

Progress under the Scheme:

  • Since its inception in 2021, it provided support amounting to ₹42,000 Crores to more than 10,500 export items at 8-digit ITC HS Code level.
  • In the current financial year, the scheme has a budget of ₹15,070 Crore with an additional increase of 10% in FY 2024-25.

Ref:Source

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