Economy

Release of pending funds would help apparel sector get over present crisis : AEPC

Our Bureau Coimbatore | Updated on September 10, 2020

Apparel exporters have urged the Government to release the pending RoSCTL dues and bail them out of the present crisis.

Hailing the announcement with regard to release of funds, the Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the pending dues under RoSCTL (Rebate of State and Central Taxes and Levies) till August this year is around ₹1,500 crore. Release of this amount would go a long way in helping exporters tide over this crisis.

The Union Cabinet in March, approved the continuation of RoSCTL for export of garments and made-ups from April 1, till the scheme is merged with Remission of Duties and Taxes on Exported Products (RoDTEP).

This scheme would, besides restoring the competitiveness of the industry, also usher in positive sentiments for achieving higher export targets. Apparel exports took a hit because of the lockdown, followed by global depression in demand, increased defaults due to bankruptcies and closure and rising logistics and transactional costs among others.

Exports had plunged by over 90 per cent in April, 66.19 per cent in May, 35 per cent in June and 22 per cent in July.

This announcement would prove to be a milestone in changing the export trend, the AEPC Chairman said.

Published on September 10, 2020

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