The Department of Commerce and Department of Finance are below active consultation for early finalisation of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme recommendations and remission prices for export things, Commerce Minister Piyush Goyal told Rajya Sabha MP and former Union Minister Suresh Prabhu. The Home Textile Exporters’ Welfare Association had earlier approached Prabhu to urge Piyush Goyal and Finance Minister Nirmala Sitharaman to declare RoDTEP prices in order to help exporters and cater to the demand for their merchandise in Europe and the US in the post-Covid period. The RoDTEP scheme, which had replaced the Merchandise Exports from India Scheme (MEIS) on January 1, 2021, was developed for reimbursement of taxes, duties, and levies at the central, state, and nearby level, which had been earlier not refunded but incurred in the approach of manufacture and distribution of exported merchandise.
“I would like to inform that a RoDTEP Committee was set up in CBIC for determining rates of remission under the scheme for export items. The report of the Committee along with recommended rates has been received in the Department of Commerce recently and is under examination,” Goyal mentioned in a letter to Prabhu on April 30, 2021. He added that Department of Commerce and Department of Revenue are below active consultation for an early finalization of the RoDTEP scheme recommendations and notification of prices for things, which includes things from the Home Textiles sector, that are decided to be integrated for coverage and would rely on lots of aspects which includes the price range obtainable for the RoDTEP scheme.
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In a letter to Sitharaman in January, Prabhu had noted that although the prices are however to be decided, the government had currently stopped the Rebate of State and Central Taxes and Levies (RoSCTL) from January 1, 2021. “Though the exporters were also assured that this will continue till its merger with RoDTEP or 31 March 2021,” the letter study. TheSpuzz had last month reported that the government is holding back export rewards worth at least Rs 35,000 crore below MEIS which includes sizeable funds traceable to FY20, according to trade sources. Under the scheme, which ceased to exist on January 1, the government had authorized Rs 39,097 crore for FY20 and Rs 15,555 crore for the 1st 3 quarters of FY21. However, a bulk of this quantity is however to released, ostensibly due to the pandemic hitting the Centre’s resource mobilisation, exporters had mentioned.