Exporters will no longer have to wait to receive their tax refunds, as the government plans to announce the new duty refund programme this week. This plan will take the place of non-compliant World Trade Organization (WTO) incentives.
The plan will be implemented, according to Commerce Secretary BVR Subrahmanyam. However, some documentation had to be completed after the commerce and finance ministries decided to broaden the scope of the plan to include all items, which necessitated a larger budgetary contribution. The two ministries had already agreed to enhance the budget from Rs 13,000 crore to Rs 17,000 crore.
The government last week notified the Rebate of State and Central Taxes and Levies (RoSCTL) scheme to allow textile exporters to get a rebate on central and state taxes till March 2024. The move will help the country realize the country’s merchandise export target of $400 billion for FY22. Industry estimates suggest the government owes about Rs 8,000 crore to exporters in unpaid RoDTEP bills.