The Confederation of Indian Textile Industry (CITI) and The Cotton Textiles Export Promotion Council (TEXPROCIL) have lauded the recent announcement of the rates of
Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
Indian textile exporters not covered under the Rebate of State and Central Taxes and Levies (RoSCTL) scheme have been urging the government for long to announce the rates.
The scheme is effective from January 1, 2021.
CITI chairman T Rajkumar said cotton yarn and fabrics were till now eligible only for duty drawback, but from now onwards, cotton yarn will get a 3.8 per cent RoDTEP with a cap of ₹11.40 per kilo and woven fabric will receive 4.3 per cent RoDTEP with a cap of ₹3.4 per square metre.
As knitted fabric has been offered only 1 per cent RoDTEP, he requested the government to review the rate based on modular RoDTEP calculation. He feels knitted fabric made out of yarn should get a higher benefit than the yarn that has been taken care of in case of woven fabric, CITI said in a press release.
TEXPROCIL chairman Manoj Kumar Patodia, in a statement, said the announcement will go a long way not only in ensuring healthy development of the value chain, but also improve India’s competitiveness in the global markets.
The rates will go a long way in empowering clusters to manufacture raw materials, supply finished goods, increase employment and realise the vision of an ‘Atmanirbhar Bharat’, he added.
The Indian government yesterday notified RoDTEP scheme guidelines and rates. Cotton yarn and fabrics are among the 8,555 tariff lines covered. The scheme for zero rating of exports will provide a level-playing field to domestic industry and boost India's competitiveness in the global markets.
However, rebate under the scheme shall not be available in respect of duties and taxes already exempted or remitted or credited.
Fibre2Fashion News Desk (DS)
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