It had arrange a committee late July underneath former commerce secretary GK Pillai to recommend RoDTEP profit charges.
The federal government is weighing a proposal to increase by three months the validity of the Merchandise Exports From India Scheme (MEIS) to March 31, 2021. Any such extension will permit it to finish an exhaustive train for rolling out the proposed Remission of Duties and Taxes on Exported Merchandise (RoDTEP) scheme, which is meant to interchange the MEIS, and supply extra time to exporters to organize themselves for the transition, sources informed FE.
Furthermore, it is sensible to operationalise the brand new scheme together with the launch of the subsequent international commerce coverage, which can stay in impact for 5 years from April 1, 2021. “A closing resolution on such an extension might be made quickly,” mentioned an official supply.
The federal government had earlier introduced that it’ll roll out the RoDTEP scheme from January 2021 to make the outbound shipments zero-rated. The scheme is basically aimed toward reimbursing even embedded taxes (that aren’t subsumed by the GST) paid on inputs consumed in exports.
It had arrange a committee late July underneath former commerce secretary GK Pillai to recommend RoDTEP profit charges. Nevertheless, provided that firming up the charges of advantages for 1000’s of merchandise throughout varied industries is a prolonged train, the federal government might have extra time to finalise the inducement construction, mentioned one of many sources. Permitting the MEIS to proceed till the brand new scheme is absolutely operational is essential to supporting the exporters as they struggling within the wake of the pandemic, exporters mentioned.
MEIS got here underneath tighter authorities scrutiny in latest months, particularly within the wake of Covid, and the resource-starved income division slashed its allocation underneath the scheme to simply Rs 15,555 crore for the April-December interval, which is nearly 40% of the outlay for the complete final fiscal. Some key wings of the federal government, such because the income division and Niti Aayog, have termed the MEIS an inefficient programme that solely drains the exchequer. For his or her half, exporters flag a number of structural bottlenecks, together with embedded taxes and elevated logistics prices, to focus on the necessity for sustained advantages.
Already, merchandise exports have witnessed a lack of momentum for the reason that 6% enlargement in September, the primary since February. India’s outbound shipments faltered by 5.1% in October and, based on preliminary estimates, the contraction simply exacerbated to 9.1% in November. As FE has reported, India has emerged because the worst performer amongst key creating economies in Asia in merchandise exports within the aftermath of the Covid-19 outbreak, trailing not simply the standard stars China and South Korea but in addition Vietnam, Indonesia, Malaysia and even Bangladesh.
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December 09, 2020 at 08:18AM
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