New Delhi: A scheme for exporters will be launched this year to reimburse state taxes and duties paid by them, Finance Minister Nirmala Sitharaman said on Saturday.
It is proposed to digitally refund to exporters, duties and taxes levied at the centre, state, and local levels, she said while presenting the Union Budget for 2020-21.
These taxes include value added tax (VAT), electricity duties and fuel used for transportation, which are not getting exempted or refunded under any other existing mechanism.
This scheme for remission of duties and taxes on “exported products will be launched from this year itself,” she said.
The move assumes significance as merchandise export from India scheme (MEIS) was not in compliance with global trade rules.
Under the World Trade Organisation (WTO) rules, certain duties like state taxes on power, oil, water, and education cess are allowed to be refunded).