Tiruppur, Sept 6 (KNN) Knitwear units in the city have approached the Central government requesting them to hasten up the reimbursement of the Rebate of State and Central Taxes and Levies (ROSCTL) to get rid of issues like COVID-19, non-availability of containers and ships to export the finished products and the economic slowdown.

The ROSCTL is popularly known as embedded taxes like cess on power, tariff on petro products and tax on transport which are offered back to the Micro, Small and Medium Enterprises in the form of scrips.

''We are free to sell it in the market or pawn it as surety in banks and mobilize some funds for meeting our urgent financial commitments,” said S Sakthivel, executive secretary, Tiruppur Exporters Association (TEA).

Raja M Shanmugham, president, TEA, said that the knitwear exports sector in Thirupur, comprising 95 per cent of the units in MSME category, has been impacted by the second wave of Covid-19 and was struggling to meet their statutory financial commitments every month.

“The total readymade garment (woven and knitwear) exports from India between January 1, 2021 and 31st August 2021 were `75,250 crore and the ROSCTL pending claim to the garment sector was 3,750 crore. The Thiruppur units have to get 850 crore out of this amount,” said Shanmugham.

Published On : 06-09-2021

Source : KNN India