The Rebate of State and Central Taxes and Levies (RoSCTL) scheme will help enhance competitiveness of apparel exporters and boost the outbound shipments, industry body AEPC said on Wednesday.
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel welcomed the release of funds for paying the dues under the scheme for fiscal 2020-21.
“This scheme has been the backbone of policy support for the industry and will surely restore not just the competitiveness of the industry, but also positive sentiments for achieving higher export targets.
“This has been the request of our members in the apparel export industry for a long time and who would definitely benefit from this measure,” he said.
He added that the sector, which has been hit hard by the lockdowns, global depression in demand, increasing defaults due to bankruptcies and huge increase in logistics and transactional costs, needed this support for regaining its position in the global markets.
Although the year so far has seen double digit declines in exports during April (-91.04 per cent), May (-66.19 per cent), June (-34.84 per cent) and July (-22.09 per cent), this scheme will be an important milestone in changing the export trends, Sakthivel said.
The RoSCTL scheme provides rebate on all embedded taxes on exports.