New Delhi, Nov 29 (KNN) Union Minister of Textiles Smriti Zubin Irani has said that the government had announced a Special Package for garments and made-ups sectors for the welfare of textiles sectors.

In a written reply in the Rajya Sabha, Irani said, ''To boost exports and enhance competitiveness, of the textiles sector, Government has announced a Special Package for garments and made-ups sectors. The package offers Rebate of State Levies (RoSL), labour law reforms, additional incentives under Amended Technology Upgradation Fund Scheme (ATUFS) and relaxation of Section 80JJAA of Income Tax Act.''

While speaking further on RoSL scheme, she said since it has been replaced by the scheme for Rebate of State and Central Taxes and Levies from 7th March 2019. Assistance is also provided to exporters under Market Access Initiative (MAI) Scheme.

The Minister also informed the Government has enhanced interest equalisation rate for pre and post shipment credit for exports done by Micro Small and Medium Enterprises (MSMEs) of textile sector from 3% to 5% from 2.11.2018. Benefits of Interest equalisation Scheme has been extended to merchant exporters from 2.01.2019 which was earlier limited to only manufacturer exporters.

Textile industry in India is subject to provisions of the WTO Agreement on Subsidies and Countervailing Measures (ASCM) which stipulate that if a developing country member’s exports of a product has reached a share of at least 3.25% of world trade of that product for two consecutive calendar years, it will be considered as export competitive in that product. Further, export subsidies on such products shall be gradually phased out over a period of eight years.

As per this provision, India is obligated to phase out subsidies which are export contingent.

Published On : 29-11-2019

Source : KNN India