10% raise in allocation for duty remission plan may help cover more sectors’.

Syllabus: GS-III

Subject: Economy(E)

Topic: Trade and External sector

Issue: RoDTEP Scheme

Context: The budgetary allocation for RoDTEP is likely to get a 10% increase in 2024-25.

Remission of Duty and Taxes on Exported Products (RoDTEP) Scheme

• Objective: To boost exports by rebating/refunding the embedded Central, State and local duties/taxes to the exporters that were so far not being rebated/refunded.
• The rebate is issued as a transferable electronic scrip by the Central Board of Indirect Taxes & Customs (CBIC) in an end to end IT environment.
• WTO compliant scheme – It replaced the Merchandise Export Incentive Schemes (MIES) which was ruled to be non-compliant of rules by the WTO.
• Administered by Department of Revenue, Ministry of Finance.

Benefits:

• Increases export competitiveness by reducing costs.
• Boosts export volumes by encouraging businesses to export more, leading to increased foreign exchange earnings and job creation.
• Reimbursement through transferable e-scrips simplifies the process.

Source: The Hindu