The government extended export benefits under the tax refund scheme — RoDTEP (Remission of Duties and Taxes on Exported Products) — to chemicals, pharmaceuticals and products of iron and steel for a specified period with a view to boost shipments of these goods.

Benefits under the RoDTEP scheme will be given to exports made during December 15 this year till September 30, 2023.

Remission of Duties and Taxes on Exported Products (RoDTEP)

• RoDTEP is based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters.

• Major components of such taxes are electricity duty and VAT on fuels used in transportation/distribution.

• The scheme rebates/refunds the embedded central, state and local duties/taxes to the exporters that were so far not being rebated/refunded.

• The Central Board of Indirect Taxes and Customs (CBIC) is implementing the scheme. 

• The scheme is being implemented from January 2021 and the rebate is issued as a transferable electronic scrip by the Central Board of Indirect Taxes and Customs (CBIC).

• It is expected to boost India’s exports and competitiveness in the global markets.

• In August 2021, the government announced the rates of tax refunds under the export promotion scheme RoDTEP for about 8,700 products, such as marine goods, yarn and dairy items. 

• In the last fiscal, Rs 12,454 crore was there for refunds under the scheme.

• After extending the scheme to other sectors, the expanded list will increase from the current 8,731 export items to 10,342 goods.

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