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New measures to boost exports, replaces MEIS with RoDTEP :FM

Union Minister of Finance & Corporate Affairs Smt. Nirmala Sitharaman held a press conference wherein various measures were announced to Boost Economic Growth, wherein it has also announced new measures to boost exports.

Here the measures are taken in the export sector:

  • It includes replacement of Merchandise Exports from India Scheme (MEIS) with Scheme for Remission of Duties or Taxes on Export Product (RoDTEP).
  • Existing dispensation in textiles of MEIS and old RoSL (Rebate on State Levies) will continue up to December 31 this year.
  • The textiles and all other sectors, which currently enjoy incentives up to 2 percent over MEIS will transit into RoDTEP from January 1, 2020.
  • In effect, RoDTEP will more than adequately incentivize exporters than existing schemes put together.
  • Revenue foregone projected at up to Rs. 50,000 crores

Fully automated electronic refund route for Input Tax Credits (ITC) in GST

  • Fully electronic refund module (FORM GSAT RFD-01) for quick and automated refund of ITC nearing completion and will be implemented by end of September 2019.
  • This is expected to monitor and speed up ITC refunds. 

Expanding the scope of Export Credit Insurance Scheme (ECIS) by ECGC

  • The scope of ECIS will be extended Export Credit Guarantee Corporation (ECGC)l
  • It will offer higher insurance cover to banks lending working capital for exports
  • Premium incidence for MSMEs will be moderated suitably.
  • The cost about to incur on this initiative Rs 1700 cr per annum.
  • This will enable a reduction in the overall cost of export credit including interest rates, especially to MSMEs
Author: Niranjan Reddy

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