The Union cabinet has approved the continuation of Rebate of State and Central Taxes and Levies (RoSCTL) for export of garments and made-ups from April 1, 2020, till the scheme is merged with Remission of Duties and Taxes on Exported Products (RoDTEP). According to AEPC, this will help exporters in promoting shipments.
AEPC chairman A Sakthivel says, given the acute shortage of working capital, this reimbursement should be given as Direct Cash Transfer, as in the case of erstwhile ROSL and drawback. This will reduce the time and transaction cost of availing the scheme.
Apparel exporters, who were anyway facing trouble with the reversal of policy benefits like MEIS and delays in refunds, are now facing uncertainties related to both export orders and import of raw materials. Hence, the continuation of this benefit will strengthen the entire cotton textiles value chain.
