RoDTEP Scheme: Enhancing Export Competitiveness through Tax Remission
Why in News?
- The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been reinstated to include Advance Authorisation holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZs) effective from June 1, 2025. This move aims to bolster India’s export sector by reimbursing embedded taxes and duties not refunded through other mechanisms.
Important Key Points:
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Objective: RoDTEP aims to refund embedded central, state, and local duties or taxes that were previously not rebated or refunded, thus enhancing the global competitiveness of Indian exports.
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Coverage: The scheme now extends benefits to Advance Authorisation holders, EOUs, and SEZ units, which were previously excluded.
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Financial Allocation: For the financial year 2023-24, the Indian Government allocated ₹15,070 crore to support the RoDTEP Scheme.
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Implementation: Benefits under RoDTEP are provided as transferable duty credit/electronic scrips (e-scrips), which are maintained in an electronic ledger by the Central Board of Indirect Taxes and Customs (CBIC).
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Advocacy for Stability: The Global Trade Research Initiative (GTRI) has advocated for a stable, five-year implementation of the scheme to provide consistency and confidence to exporters.
