Facing criticism from exporters and domestic industry over the decision to axe
Facing criticism from exporters and domestic industry over the decision to axe the Merchandise Export from India Scheme (MEIS) scheme, the commerce department has now told the revenue department that some broad benefits should be continued under MEIS’s proposed successor.
Senior sources say the ministry has repeatedly pushed back against the decision to cap the MEIS at Rs 9,000 crore for the April-December period and the unilateral suspension of disbursal of benefits. Officials say, the commerce department has now suggested that benefits under the proposed Remission of Duties or Taxes on Export Products (RoDTEP) scheme be expanded to support exporters.
The updated RoDTEP scheme had been announced earlier as an updated alternative of the MEIS, set to go live from January 1, 2021. However, benefits were reduced drastically after the finance department expressed objections. Now, the commerce department has suggested that it follow a formula that is similar to the MEIS.
“While the rates for RoDTEP are…