The (Remission of Duties or Taxes on Export Products) RoDTEP committee has sought evidence and data from the industry to justify their claim of the benefit needed to be given under the proposed tax neutralisation.
The Merchandise Exports from India Scheme (MEIS) is being replaced by RoDTEP as the former violates the global trade norms.
The apparel export sector has suggested 6 to 6.5 per cent RoDTEP rate. The industry believes that not all sectors may get the benefits immediately.
Meanwhile, the committee has sought clarifications on the rates suggested by various sectors as they have to verify the rates.
It is pertinent to mention here that the committee has been meeting regularly. There is hardly any chance that MEIS will get extended.
Former Home and Commerce Secretary GK Pillai is leading this three-member committee.
The committee was constituted 6 months back to formulate the modalities to calculate taxes at the central, state and local levels imposed on the exported products including embedded taxes, such as local levies, coal cess, mandi tax, electricity duties and fuel used for transportation, which are not exempted or refunded under any other existing scheme.
The Government proposes to roll out the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme next month replacing the popular MEIS.
Remission rates suggested by the industry are higher than the incentives under MEIS, payable as a percentage of realised free-on-board value of 2, 3 and 5 per cent.
