The Cotton Textiles Export Promotion Council (Texprocil) has welcomed the cabinet’s approval of the scheme to provide rebate in state and central embedded taxes for the made ups and apparel sectors. Texprocil chairman KV Srinivasan points out rebate of state and central taxes will improve competitiveness of made ups products in export markets. Presently, the ROSL scheme refunds specified state taxes but does not refund central taxes.
Srinivasan feels exporters of made ups, especially home textiles from India, face a huge disadvantage in leading export markets due to high import duties as compared to imports from other competing nations. The scheme will go a long way in helping the exporters in overcoming this disadvantage and to increase exports, he added.
However, the Texprocil chief explained that state and central taxes are applicable on cotton yarn and fabrics also as in the case of made ups and apparels. He urged the government to cover cotton yarn and fabrics also under the scheme. Srinivasan says the move will lead to an increase in export of textiles and clothing as well as employment generation.