The Cabinet approval for continuation of duty payback benefits for the export of garments and made-ups will help exporters in promoting shipments, the Apparel Export Promotion Council of India (AEPC) on Wednesday said.
The Union Cabinethas approved the continuation ofRebate of State and Central Taxesand Levies (RoSCTL) for export of garments and made-ups from April 1, 2020, till the scheme is merged with Remission of Duties and Taxes on Exported Products (RoDTEP).
AEPC Chairman ASakthivel said thatgiven the acute shortage of working capital, thisreimbursement should begiven as Direct Cash Transfer, as in the case of erstwhile ROSL and drawback.
"This will reduce the time and transaction cost of availing the scheme," he said in a statement.
He added that the approvalis much-needed policy support for the Indian apparel exporters.
"The apparel exporters, who were anyway facing trouble with the reversal of policy benefits like MEIS and delays in refunds, are now facing uncertainties related to both export orders and import of raw materials," he said.
The continuation of the benefit will strengthen the entire cotton textiles value chain, he said.