As the RoSCTL scheme faces uncertainty beyond March 2024, Indian garment exporters, led by AEPC, call for its extension. Explore the scheme’s impact, challenges in the global market, and the industry’s plea for government action.
Navigating the Future: RoSCTL Scheme’s Fate Hangs in Balance
As 2024 begins, the Indian textile sector grapples with a critical question—will the Rebate of State and Central Taxes and Levies (RoSCTL) scheme extend its benefits post-March 31, 2024? The scheme, instrumental in supporting Indian garment exporters amid global challenges, is under scrutiny as the industry faces uncertainties.
Background: RoSCTL Scheme Overview
Introduced in 2021, the RoSCTL scheme aimed to provide rebates on central and state taxes for outward shipments by garment exporters. However, its tenure is set to conclude in March 2024 unless the government intervenes.
Scheme Components and Benefits
Under the RoSCTL scheme, rebates encompass various state taxes and levies, including VAT on fuel, mandi tax, duty of electricity, and stamp duty on export documents. These benefits have proven crucial for Indian garment and home furnishing exporters, offering support during challenging times such as the COVID-19 pandemic.
Global Economic Challenges
The global economic landscape, marred by conflicts like Russia-Ukraine and Israel-Hamas, has significantly impacted garment and textile exports. This challenge extends beyond India, affecting major exporting countries. The RoSCTL scheme played a vital role in sustaining India’s competitiveness in the global export market.
Industry Call for Extension
Against this backdrop, the Apparel Export Promotion Council (AEPC) has strongly advocated for a three-year extension of the RoSCTL scheme. AEPC emphasized the prevailing market sentiments, highlighting a considerable downturn and recessionary trends in traditional markets like the US and the European Union.
Government’s Decision Pending
As the new year unfolds, the fate of the RoSCTL scheme remains uncertain. The question looms—will the government extend the scheme to continue supporting Indian garment exporters in the face of ongoing global challenges? Industry stakeholders eagerly await a resolution.
In conclusion, the RoSCTL scheme stands at a crucial juncture, with its extension holding significant implications for the Indian textile sector. The industry’s plea for government action reflects the prevailing uncertainties and the need for continued support in navigating the complexities of the global export market.
Also read: AEPC Urges for a Three-Year Extension of RoSCTL Scheme
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