Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rebate of State Levies (ROSL) Scheme
Mains level: Textile sector of India and its global competitiveness
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.
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