The Union Cabinet has approved the extension of the popular scheme for remitting embedded taxes and levies on garments & made ups exports -- Rebate of State and Central Levies and Taxes (RoSCTL) -- by another two years, till March 31 2026.

“Continuation of the scheme for proposed duration of two years will provide stable policy regime which is essential for long term trade planning, more so in the textiles sector where orders can be placed in advance for long term delivery,” per an official release issued on Thursday.

The RoSCTL, which helps to  remove the burden of taxes and levies and provides level playing field on the principle that “goods are exported and not domestic taxes”, had first been approved by the Cabinet up to March 31 2020, after which further approval was given till March 31 2024. “The present extension up to March 31 2026 helps in enhancing export competitiveness... It makes apparel/garments and made ups products cost-competitive and adopts the principle of zero-rated export,” the release said. 

Most of the other products not covered under the RoSCTL are eligible to avail benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP), it added.

“At a time when the traditional markets of the USA & the EU are facing unprecedented recessionary trends, the extension of this scheme for next two years has brought much- needed relief to the industry. This scheme will help the apparel Industry immensely to plan the business on a consistent basis while staying competitive,” said Sudhir Sekhri, Chairman, Apparel Export Promotion Council.

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