The Government of India under the Ministry of finance, Department of Revenue has set up a three-member committee headed by Secretary (retired)G.K. Pillai for determination of ceiling rates under Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
- The two other members are Y G Parande, retired Central Board of Indirect Taxes & Customs member and Gautam Ray, retired chief commissioner of custom and central excise.
Remission of Duties and Taxes on Exported Products (RoDTEP) scheme
i.The Remission of Duties and Taxes on Export Products (RoDTEP) scheme aims to reimburse taxes and duties incurred by exporters such as Duty on power charges, Value Added Tax on fuel in transportation, farm sector, captive power generation, mandi tax, stamp duty and central excise duty which are not compensated under any other scheme.
ii.It is a World Trade Organization (WTO) compliant scheme.
Scope of the Committee:
i.The Committee will interact with administrative ministries, export promotion councils, commodity boards, trade bodies and other stakeholders to take their views on fixing the ceiling rates under RoDTEP scheme
ii.The committee in its final report will recommend a ceiling rate of Remission of Duties and Taxes on Export Products (RoDTEP) after taking into account the Direct Taxes & Indirect Taxes levied on the exported products.
- The committee will determine the methodology, decide modalities of holding meetings, conduct field visits and study specific production processes and suggest a ceiling rate as part of its report.
- The committee will submit its main report to the government within three months from identification and prioritisation of sectors/items by the government.
What is RoDTEP?
- Remission of Duties and Taxes on Export Products is a new reimbursement scheme which will replace the existing Merchandise Export from India Scheme(MEIS) scheme for exports of goods from India.
- It aims to reimburse the taxes and duties incurred by exporters such as local taxes, coal cess, mandi tax, electricity duties and fuel used for transportation, which are not getting exempted or refunded under any other existing schemes.
- The previous Merchandise Export from India Scheme (MEIS) scheme is being phased out as it was found to violate the World Trade Organization rules.
- This scheme will incentivise exporters at an estimated cost of Rs. 50,000 crore to the exchequer.
Recent Related News:
i.Union Cabinet approves a new scheme Remission of Duties and Taxes on Export Products (RoDTEP) for enhancing exports to International Markets.
ii.Insurance Regulatory and Development Authority of India (IRDAI) has set up a 9-member panel headed by G Srinivasan to study suitability of Surety Bond issuance by Indian insurers.
About Ministry of Finance:
Union Minister – Nirmala Sitharaman
Minister of State – Anurag Singh Thakur