AEPC seeks strengthening of special package for garments

May 12, 2018 12:00 am | Updated 03:50 am IST - Coimbatore

The Apparel Export Promotion Council (AEPC) has sought strengthening of the special package announced by the government in 2016 for the apparel sector by increasing the Rebate of State Levies (ROSL) under it.

A press release from the council said that according to a study conducted by it, the special package had generated Rs. 2,500 crore additional investment. “The findings of the AEPC survey suggests that ROSL has had a positive impact on the garment industry,” the release said. There was a direct correlation between release of ROSL to exporters and increase in exports in the month of announcement and implementation of the scheme.

A. Raja Shanmugam, president of Tirupur Exporters’ Association, told The Hindu that the special package was intended to boost exports. However, the intended growth derailed with the implementation of the GST. Under GST, the duty drawback paid to exporters and the ROSL had shrunk.

The textile industry needed a supportive package to survive in the global competition. All the neighbouring countries were becoming a potential threat to India’s ready made garment export sector.

HKL Magu, chairman of the council, added in the release that though the GST roll-out had temporarily slowed down the industry, the positive impact of ROSL was expected to bring results during this financial. “AEPC has informed the ministries concerned about the positive impact of ROSL on RMG exports and has requested the policy makers to increase the ROSL rates,” he said.

The special package for apparel and made ups needs to be continued and more embedded taxes need to be brought under it, according to an industry source.

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