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Government fixes input duty remission rates for exporters under new scheme at 0.5-4.3%

Our Bureau. New Delhi | Updated on August 17, 2021

The scheme is designed to reimburse input taxes, duties paid by exporters   -  tcly

RoDTEP scheme covers 8,555 items; excludes steel, chemicals, pharma

In a big relief for exporters, the government has finally announced rates for the new input duty remission scheme that was introduced on January 1 this year, in place of a popular older scheme that was incompatible with WTO norms.

The new scheme, Remission of Duties and Taxes on Exported Products, however, may fall a little short of expectations of exporters as the refund rates, mostly ranging between 0.5 per cent and 2.5 per cent (of export value of the item), but also going up to 4.3 per cent for certain items, are lower than the rates under the older scheme for many items.

The older scheme, called the Merchandise Export from India Scheme (MEIS), offered remission of between 2 and 5 per cent.

The total outgo under the RoDTEP scheme and RoSCTL, a similar scheme for garments and made-ups notified last week, will be around Rs 19,400 crore, Commerce Secretary B.V.R. Subrahmanyam said at a press conference. Of this Rs 12,454 crore has been allocated to RoDTEP.

The new scheme covers 8,555 product lines of a total of about 11,000 items.

The major items kept out of the scheme are chemicals, steel and pharmaceuticals as these are doing well for themselves, the Secretary said.

 

Published on August 17, 2021

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