The Department of Revenue has allowed the release of pending Rebate of State Levies (RoSL) worth Rs 464.13 crore to garment exporters.
We may expect a prelim question like- “The Rebate of State Levies (ROSL) Scheme is related to which of the following industrial sector? ” with some unrelatedly looking options.
Rebate of State Levies (ROSL) Scheme
- Last year, the Union Cabinet has approved the Scheme to Rebate State and Central Embedded Taxes to Support the Textile Sector.
- The scheme aimed to reimburse the State levies that garment and made-up exports incurred.
- But it was discontinued on and replaced with the Rebate of State and Central Taxes and Levies scheme.
Why was such a scheme needed?
- ROSL plays a vital role for the exporters by providing zero-rated taxation on apparel and made-up products.
- This scheme enabled the exporters to increase traffic, enhance competitiveness among the global market, and compete against countries such as Sri Lanka, Bangladesh, Cambodia and Vietnam, who enjoy zero taxation.
- This also benefits the traders who export to the European Union (EU), India’s largest export market for the apparel sector, facing a tariff variation of 9.6 per cent.
