The continuation of the Rebate of State and Central Taxes and Levies (RoSCTL) till March 2024 has come a major relief for the textile exporters with the demand in global markets slowly opening up.

The government had maintained same rate as notified in March 2019 for both made-ups and garments.

The RoSCTL scheme was discontinued in January after the implementation of the RoDTEP (Remission of Duties and Taxes on Export Products) scheme.

Manoj Patodia, Chairman, the cotton Textiles Export Promotion Council said the extension of the RoSCTL scheme is a huge positive development which will improve the competitiveness of made ups articles in the export markets and lead to a quantum jump in overall exports besides increasing employment especially women.

It is a globally accepted principle that taxes and duties should not be exported to enable a level playing field in the international market for the exporters .This implies that all taxes and levies borne on the products which are exported should either be exempted or refunded to the exporters, he said.

In the textile sector, overseas buyers place orders and exporters have to chalk out their activities well in advance and therefore, it is important that the policy regime regarding export of textile products should be stable, said Patodia.

Exporters can now take a long term perspective while negotiating export orders, he added.

Exporters are passing through challenging times on account of difficult export market conditions caused by the Covid pandemic and the RoSCTL scheme can help them to overcome the situation substantially, added Patodia.

Dr Siddhartha Rajagopal, Executive Director, Texprocil said the extension of the RoSCTL scheme will not only lead to an increase in exports of cotton textiles but also result in attracting investments in the sector.

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