So just like other countries, we need to have a single window for this,” says Singh.Īccording to Singh, cutting down logistics costs are mandatory to make products competitive. On top of it, to get refunds of state-level taxes, you will have to do the documentation all over again, which is a huge burden. But in India, for example, there is a duty drawback scheme that provides the refund/ recoupment of custom and excise duties paid on inputs or raw materials etc, then there is GST, to get a refund for both you have to do documentation separately. Throwing light on the red-tapism involved in getting refunds under various schemes, Singh added, “In other countries, there is a mechanism for integrated tax neutralisation - a single window.
The Union Budget 2021–22 has allocated Rs 13,000 crore for the RoDTEP. To make export promotion schemes as per the norms of WTO, India discontinued the MEIS scheme, which was the incentivisation scheme and introduced duty neutralisation rates under the Remission of Duties and Taxes on Exportable Products (RoDTEP), which will refund embedded duties and taxes not refunded earlier, such as fuel, stamp and electricity duty, including those implemented at the state and local levels.
The government has already taken some steps in this direction but some more steps are required in this direction. According to WTO, countries should not have many subsidising schemes for the exporters. We are dependent on imports for a range of products, so the new trade policy should boost domestic manufacturing and should also suggest ways to make it competitive,” says Ram Singh, Professor at Indian Institute of Foreign Trade.Īnother important industry demand is to have WTO compliant schemes. “One of the major challenges that need immediate attention is to boost domestic manufacturing. Amid global pressure, Covid-19, and the vision of a self-reliant India, the task of formulating the policy will be far more daunting. The policy will be the guiding principle for foreign trade for the next five years. India will introduce its foreign trade policy in 2022.
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