The proposal is part of a 100-day action plan prepared by the ministry for the new government
As part of the new 100-day action plan prepared for the new government, the Commerce Ministry of India has proposed a major export promotion scheme. The newly elected government seems to be taking an interest in improving the commerce structure of the country. The plan is to be put in execution stage after the new government takes charge on May 30.
The commerce ministry is considering a major export promotion scheme to ensure expeditious refund of central and state taxes and levies to boost shipments in the wake of global challenges at trade front, an official said.
A new export promotion scheme has been necessary for the country for a while now. The existing merchandise exports for India (MEIS) scheme has been opposed by the US in the World Trade Organisation (WTO) several times. As per WTO the existing schemes prevailing in the country’s commerce sector are not in compliance with global trade norms prevailing all over the world.
The new scheme, likely to be named as Central and State Taxes and Levies Scheme, is expected to ensure rapid refund of central and state taxes and levies. The scheme will also improve shipments and logistics sector on the global trade front.
The ministry has also proposed to Introduce a WTO compliant production-based support scheme to increase outbound shipments. Any government support which is subject to export performance becomes a prohibited subsidy under WTO norms.
The action plan has also proposed the launch of a new five-year foreign trade policy (2020-25) on September 1 this year.
