According to reports, the Ministry of Finance said that switching all exports to the Rebate of State and Central Taxes and Levies (RoSCTL) scheme may be difficult for the government, considering the present Budget limitations.
However, the department of commerce shall be prioritising the sectors which require support for the government. RoSCTL is an export package than the government has been working on to replace the existing Merchandise Exports from India Scheme (MEIS).
The RoSCTL scheme was laid out by the ministry of commerce soon after the United States brought the issue of India’s export promotion programmes before the World Trade Organisation.
According to sources, the occurrence of Central and State levies to be refunded was estimated to be around 4-5% by the government. Also, the refunds are expected to amount to $16 billion concerning the $330 billion merchandise exports.
Also Read: Key measures for export segment, MEIS replaced by new scheme
The government has estimated a revenue impact of over Rs.65,720 crore on all export-promotion schemes out of which MEIS is expected to account for Rs.36,615 crore revenue impact.
In the same line, while the government has been working consistently to come up with a rebate scheme for exporters, Piyush Goyal the Union Minister of Commerce and Railways also has been having discussions with various top officials to ease the process of loans for consumers. According to sources, the schemes will be finalised shortly and announced very soon.
For any clarifications/feedback on the topic, please contact the writer at viswanathan.v@cleartax.in
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