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TEA seeks settlement of rebate claims on State levies

Coimbatore | Updated on November 29, 2018 Published on November 29, 2018

Knitwear exporters in Tirupur have appealed to the Union Textiles Ministry to clear the pending ROSL (Rebate on State Levies) claims without further delay.

Tirupur Exporters’ Association President Raja M Shanmugham said the pending ROSL claims for the knitwear cluster alone worked out to around ₹105 crore.

“Settling the claims will help the units as most operate on wafer-thin margin and are struggling to sustain in a highly competitive price-conscious market. Further, we are compelled to compete against countries that enjoy duty-free status in the EU and the US markets. We are taking various measures to cut cost and emerge competitive,” Shanmugham said.

Sources said claims in the past three months’ had not been settled. ROSL is mainly to compensate for the embedded taxes such as electricity tax and mandi tax that are not included in GST, the source said.

Emphasising the need for urgent intervention, the TEA president said the garment export sector, after passing through a declining trend for over a year, had started to record a positive trend only during October.

Published on November 29, 2018
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