Key Points
The government can consider giving refunds to exporters in cash instead of scrips for tax remission schemes, as it would immediately improve cash flow for them, economic think tank GTRI said on Tuesday..
At present, the refund under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and the Rebate of State and Central Taxes and Levies (RoSCTL) scheme is issued as a scrip, which can be used to pay basic customs duties at the time of import...
The scrip can be sold to other importers, who can later use the scrip instead of cash for payment of basic customs duty...
It said that since the average RoDTEP rate is low at about 2.5 per cent, it is suggested that the refund amount can be transferred in cash to exporters' bank accounts post-export, as done in the case of the duty drawback scheme...
Direct cash disbursements would eliminate the need for discounted scrip sales, ensuring that exporters receive the full value of their refunds," Srivastava added...
