News: Government of India has decided to cap export incentives under Merchandise Exports from India Scheme(MEIS) at Rs.2 crore per exporter on outbound shipments made during September-December, 2020.
- Merchandise Exports From India Scheme(MEIS): It was introduced in the Foreign Trade Policy (FTP) 2015-20.
- Objective: To offset infrastructural inefficiencies and associated costs involved in exporting goods which are manufactured in India including products manufactured by the MSME Sector.
- The Government of India has announced a new WTO-compliant scheme called Remission of Duties or Taxes On Export Product (RoDTEP) which will replace MEIS scheme starting 1 January, 2021.
- Remission of Duties or Taxes On Export Product (RoDTEP): The scheme aims to reimburse taxes/ duties/ levies at the central, state and local level which are currently not being refunded under any other mechanism, but which are incurred in the process of manufacture and distribution of exported products.
- Finance ministry has set up a committee under the chairmanship of former commerce secretary GK Pillai to finalise the rates under RoDTEP that will allow reimbursement of all embedded taxes including local levies paid on inputs by exporters.