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.
