Rapid Fire
Tax Relief Strategies for Sugar
- 26 Dec 2023
- 1 min read
The Union government is planning to revive tax remission benefits on sugar exports, which were placed in the ‘restricted’ category in mid-2022.
- The Remission of Duties and Taxes on Export Products (RoDTEP) scheme, which was launched in January 2021, aims to provide a mechanism for reimbursement of taxes, duties and levies that are incurred by the export entities in the process of manufacture and distribution of exported products.
- The RoDTEP Scheme is a Department of Commerce scheme (Ministry of Commerce & Industry), and it is being implemented by the Department of Revenue(Ministry of Finance).
- However, under this scheme, sugar exporters faced a tax query from the customs authorities, as it is a restricted commodity and is not eligible for export benefits.
- Industry challenges arose as sugar, previously under free export, sought RoDTEP benefits.
Read more: Scheme for Remission of Duties and Taxes on Exported Products
