To heighten exports, the government on Tuesday, August 17, 2021, announced rates of tax refund for 8,555 products such as marine goods, yarn, dairy items under the export promotion scheme RoDTEP.
The RoDTEP scheme works on the principle, “taxes and duties should not be exported, whereas taxes and duties on exported products should be either exempted or remitted to exporters”.
RoDTEP stands for Remission of Duties and Taxes on Export Products. It’s a new scheme that will be applicable from January 1st, 2021, formed to replace the existing Merchandise Exports from India Scheme (MEIS).
The RoDTEP will ensure that the exporters receive refunds on the embedded taxes and duties previously non-recoverable. The scheme was brought to improve exports which were relatively lower in volume earlier.