FM announces new tax refund scheme to help remove export uncertainty

A new tax refund scheme announced by Finance Minister Nirmala Sitharaman on Saturday will replace the current one, compliant with World Trade Organization (WTO). This removes uncertainty over taxes on outbound shipments and was welcomed by exporters.

“The new scheme is attractive as it will neutralise all duties and levies,” said Sharad Kumar Saraf, president of the Federation of Indian Export Organisations.

From the next year, the Remission of Duties or Taxes on Export Products (RoDTEP) will replace the Merchandise Exports from India Scheme (MEIS) for all exported goods except textiles.

Saraf said giving a three-month notice for the roll-out