After countries like the US challenged India’s export “subsidy” programmes, the Commerce Ministry has circulated a Cabinet Note to phase out the flagship Merchandise Exports from India Scheme (MEIS) and move to a more WTO-compatible regime which will refund both state and Central levies on inputs consumed in exports, and various sectors will be covered in phases, says a report.
Under the new plan, exporters will be refunded levies that are not reimbursed through freely transferable scrips. The Duty Drawback panel, under the Finance Ministry (with inter-ministerial representation), will fix the rate of scrips for various products. The scheme will be monitored by the Ministries of Commerce and Finance (Department of Revenue), said a report.
