Big news for businessmen! Center approves continuation of tax and duty exemption for garment exporters

New Delhi. The Central Government has approved the continuation of the State and Central Taxes and Duties Rebate (ROSCTL) scheme for garment exports till March 2024. With this, textile exporters will continue to get exemption on Central and State Taxes as before. The objective of this initiative is to increase the competitiveness of the textile sector. The cabinet meeting chaired by Prime Minister Narendra Modi approved the continuation of the RoSCTL scheme. This approval has been given at the same rate as was notified by the Ministry of Textiles for export of apparel and export of sheets, blankets, carpets etc.

Exemption scheme will continue till 31 March 2024
Information and Broadcasting Minister Anurag Thakur said that the scheme will continue till March 31, 2024. This will help in increasing exports and generate employment. He said that the areas which will come under the purview of this scheme, they will not get the benefit of exemption from duties and taxes on export products (RODTEP) scheme. However, according to the rules framed by the Ministry of Commerce, the textile products which will not come under the AOSCTL scheme, will be able to take the benefit of the RoDTEP scheme along with other products. The implementation of the scheme will be done by the Revenue Department. The Ministry of Textiles will issue revised guidelines on the advice of the Department of Revenue regarding the continuation and implementation of the AOACCTL scheme.

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Products will be able to become globally competitive
Continuing RoSCTL for textiles and made-up products like bed sheets, blankets, carpets, exemptions on taxes and duties will enable these products to be globally competitive. Under this scheme a duty credit scrip is issued to the exporters for the value of taxes and duties in the exported product. Exporters can use it to pay basic customs duty for import of equipment, machinery or any other raw material. These duty credit scrips can be traded i.e. if the exporter does not need it for his personal use then he can give it to another importer.

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Annual exports will reach 100 billion dollars
Earlier, the maximum rate of discount for apparel under the RoSCTL scheme was 6.05 per cent, while for made-up it was up to 8.2 per cent. The Textile Export Promotion Council (AEPC) chairman A.K. Sakthivel said that the extension of the scheme will help exporters to collect all taxes and make the products globally competitive. He said that the scheme will help bring back the positive sentiments in the sector and help the Indian textile value chain achieve $100 billion annual exports in the next three years.

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