Tirupur’s garment exporters are waiting for the Rebate on State Levies (ROSL), amounting to over Rs 2,600 crores, to be released. The total ROSL amount for India’s readymade garment exports (woven and knitwear) estimated for the period September 20, 2016 to June 20 this year was Rs 3,025 crores, of which Rs 400 crores have been disbursed so far.
Tirupur exporting units alone have to get about Rs 550 crores. Under the ROSL scheme, a rebate on state levies is provided such as value-added tax and central sales tax on inputs, including packaging, fuel, and electricity duty, accumulated through various stages of production, from yarn to finished garments. For exporters, the scheme offers enhanced duty drawback cover on inputs.
The scheme takes into consideration all taxes paid by exporters like VAT, electricity duty, octroi, entry tax etc. The ROSL scheme is an integral part of the Rs 6,000 crores special package announced by the Center last year to strengthen the textile and apparel sectors to improve its global competitiveness. It has set a target to generate an additional 30 billion dollars in exports and create a crore of jobs over a three-year period. The special package had helped apparel exports to record a 31 per cent growth in April over the previous year.
The ROSL rate for garment items exported varies from 2.65 per cent to 3.9 per cent.