From UPSC perspective, the following things are important :
Prelims level : RoSCTL Scheme
Mains level : Not Much
The RoSCTL scheme will continue for export of garments/apparels, and made-ups till March 31, 2024, according to a press release from the Union Ministry of Textiles.
What is RoSCTL Scheme?
- RoSCTL stands for Rebate of State and Central Taxes and Levies (RoSCTL).
- It is an export incentive in the form of transferable and sellable duty credit scrips (certificate) offered on the basis of the value of the export.
- It replaces the Rebate of State Levies (RoSL) scheme, a monetary incentive scheme under which Customs would deposit the rebate directly into the exporter’s bank account.
- This scheme was seen as India’s reaction to the increasing international pressure on export incentives provided by the Indian government.
Why was this scheme introduced?
- The US, in particular, has been very vocal, urging the discontinuation of export incentive schemes like the Merchandise Exports from India Scheme (MEIS).
- It held that they flouted the WTO Agreement on Subsidies and Countervailing Measures.
Why was this scheme extended to textile sector?
- With a view to boost exports and job creation in the textile sector, the government has approved the continuation of the scheme.
- The scheme aims to help them cut high logistics and other costs and enable them to compete globally.