Business · Trade · 2 hrs ago
India sets up panels to overhaul two exporter tax refund schemes
The Indian government has set up two panels to review exporter tax refunds as global pressures weigh on the country’s shipments.
The panels will examine RoDTEP, which covers exporters across many sectors, and RoSCTL, which mainly supports garment exporters.
These schemes refund domestic taxes and levies on inputs used to make exported goods, helping keep exports free of those costs.
The move follows a government committee’s call for better-targeted payouts and more effective use of funds.
Timely refunds can free up exporters’ cash and help them compete with businesses in countries where such taxes are lower or refunded.
The panels’ recommendations may be discussed in upcoming Union budget deliberations and could guide new frameworks for both schemes.
India has set up two panels to review and reframe tax refund schemes for exporters.
The panels will examine the Remission of Duties and Taxes on Exported Products scheme and the Rebate of State and Central Taxes and Levies scheme.
The move follows a recommendation by the expenditure finance committee for better targeting and more effective use of funds.
The panels’ recommendations are likely to be discussed during upcoming Union budget deliberations.
- Who
- The Indian government has set up the panels. Senior government officials and industry executives will serve as members.
- What
- Two panels will review and reframe the RoDTEP and RoSCTL exporter tax refund schemes.
- When
- The panels’ recommendations are expected to be discussed during upcoming Union budget deliberations. The date the panels were set up is not stated.
- Where
- India.
- Why
- The government is seeking to better target refunds and use funds more effectively, following a recommendation by the expenditure finance committee.
This story does not have two clearly opposing sides.
The expenditure finance committee recommended better targeting and optimal use of funds for the schemes.
Mint reported that the government had set up two panels to review and reframe the schemes.
The panels’ recommendations are likely to be discussed.
- Schemes under review
- RoDTEP and RoSCTL
- RoDTEP panel chair
- Lav Agarwal, director general of foreign trade
- RoSCTL panel chair
- Arti Kanwar, additional secretary in the textiles ministry
- Requested five-year funding
- Nearly ₹2 trillion combined for the two schemes
- RoDTEP refund rates
- 0.3% to about 4.7% of consignments’ free-on-board value
- RoSCTL refund rates
- 1.7% to 8.2%, depending on the product