Government will launch scheme for exporters to reimburse state taxes this year: FM

NEW DELHI: In order to increase the decrease in shipments abroad, the finance minister said on Saturday that an outline will be launched for exporters this year to reimburse taxes and fees paid by them.

It is proposed to digitally reimburse exporters, tariffs and taxes collected at the central, state and local levels, he said when presenting the Union Budget by 2020-21.

These taxes include value added tax (VAT), electricity tariffs and fuel used for transportation, which are not exempt or reimbursed under any other existing mechanism.

This scheme for the remission of tariffs and taxes on exported products will be launched as of this year, he said.

Live plus The measure becomes important since the export of merchandise from the Indian scheme (MEIS) did not comply with the global rules.

Under the World Trade Organization (WTO), certain rights, such as state taxes on the supply of energy, oil, water and education, can be reimbursed).

He also said that to develop each district as an export center, the efforts of the center and state governments are being synergized and institutional mechanisms are being created so that each district becomes an export center.

The country's exports contracted for the fifth consecutive month by 1.8 percent in December 2019 to $ 27.36 billion.

Imports also decreased by 8.83 percent $ 38.61 billion, lowering the trade deficit to $ 11.25 billion during the month under review. The trade deficit during December 2018 was $ 14,490 million.

During April-December 2019-20, exports fell 1.96 percent to $ 239.29 billion, imports decreased 8.9 percent to $ 357.39 billion, leaving a trade deficit of $ 118.10 billion.