WTO-compliant remission of tax scheme for exporters gets canbinet nod

Under the scheme, an inter-ministerial committee will determine the rates and items on which the reimbursement of taxes and duties would be provided.

The Cabinet Committee on Economic Affairs on Friday approved a World Trade Organisation (WTO)-compliant scheme for reimbursement of taxes and duties to exporters. This would replace the existing scrip-based scheme. The decision is aimed at giving a boost to the country’s dwindling exports. 

At present, goods and services tax (GST) and Customs duty on inputs required to manufacture exported products are either exempted or refunded. However, certain taxes are outside GST and are not refunded for exports. These include value-added tax on fuel used in transportation, mandi tax and duty on electricity used during manufacturing. These taxes would be covered for