PM Modi chairs in-person meeting of new Cabinet: Watch video
New Delhi, July 14: The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval for continuation of Rebate of State and Central taxes and Levies (RoSCTL) with the same rates as notified by the Ministry of Textiles vide Notification dated March 8 2019, on exports of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) in exclusion from Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for these chapters.
The scheme will continue till March 31, 2024.
The other Textiles products (excluding Chapters-61, 62 & 63) which are not covered under the RoSCTL shall be eligible to avail the benefits, under RoDTEP along with other products as finalised by the Department of Commerce from the dates which shall be notified in this regard.
Continuation of RoSCTL for Apparel/Garments and Made-ups is expected to make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism. It will ensure a stable and predictable policy regime and provide a level playing field to Indian textiles exporters. Further, it will promote startups and entrepreneurs to export and ensure the creation of lakhs of jobs.
Tax Refund for Exported Products
It is a globally accepted principle that taxes and duties should not be exported, to enable a level playing field in the international market for the exporters. In addition, to import duties and GST which are generally refunded, there are various other taxes/duties that are levied by Central, State and Local Government which are not refunded to the exporters. These taxes and levies get embedded in the price of the ultimate product being exported. Such embedded taxes and levies increase the price of Indian Apparel and Made-ups and make it difficult for them to compete in the international market.
Some of the cess, duties for which taxes and levies are not refunded and are part of embedded taxes, directly and indirectly, are as follows:-
a. Central and state taxes, duties & cesses on fuel used for transportation of goods, generation of power and for the farm sector.
b. Mandi Tax
c. Duty on electricity charges at all levels of the production chain
d. Stamp duty
e. GST paid on inputs such as pesticides, fertilizers, etc.
f. GST paid on purchases from unregistered dealers, etc.
g. Cess on coal or any other products
Realizing the importance of refund of embedded taxes, cesses and duties, the Ministry of Textiles first launched a scheme by the name of Rebate of State Levies (ROSL) in 2016. In this scheme, the exporters of apparel, garment and made-ups were refunded embedded taxes and levies through the budget of the Ministry of Textiles.
In 2019, the Ministry of Textiles notified a new scheme by the name Rebate of State and Central Taxes and Levies (RoSCTL). Under this scheme, the exporters are issued a Duty Credit Scrip for the value of embedded taxes and levies contained in the exported product. Exporters can use this scrip to pay basic Customs duty for the import of equipment, machinery or any other input.
Union Cabinet's meeting through video conferencing:
The Union Cabinet has been meeting regularly since April via video conferencing. Reports stated that the Union Cabinet has decided to meet in person because of the upcoming monsoon session of Parliament, which will begin from July 19. It can be seen that the session will continue for 13 days and will also mark a return of the pre-coronavirus timings of the House from 11am to 6pm.
PM Modi is also scheduled to chair a meeting of the Council of Ministers at 4pm today via video conferencing. This is the second time the Council of Ministers will be meeting after the recent reshuffle.
Who all are on board?
Following the reshuffle of the ministries, the Modi government has brought on board Union ministers Smriti Irani, Bhupender Yadav and Sarbananda Sonowal as the new members of the Cabinet Committee on Political Affairs headed by the Prime Minister himself.
Union ministers Arjun Munda, Virendra Kumar, Kiren Rijiju and Anurag Thakur have been included in the rejigged Cabinet Committee on Parliamentary Affairs. The Cabinet Committee on Investment and Growth has also been rejigged and now comprises PM Modi, Rajnath Singh, Amit Shah, Nitin Gadkari, Nirmala Sitharaman, Piyush Goyal, Narayan Rane, Jyotiraditya Scindia and Ashwini Vaishnaw.
BJP President JP Nadda's meeting with party members
Meanwhile, BJP national president JP Nadda meets party workers at the party's headquarters in Delhi. BJP National General Secretary Kailash Vijayvargiya also present.
Congress holds Parliamentary strategy group meet today
Ahead of the Monsoon session of Parliament, which starts July 19, Congress president Sonia Gandhi will chair a meeting of the party's Parliamentary strategy group today. Among those who will attend the July 14 meeting are Congress leader Rahul Gandhi, leader of Opposition in Rajya Sabha Mallikarjun Kharge and leader of Congress in Lok Sabha Adhir Ranjan Chowdhury.
Highlights Of Cabinet Briefing
• The Union Cabinet approves continuation of Rebate of State and Centraltaxes and Levies (RoSCTL) on export of apparel/ garments and made-ups. The move will boost export in global markets.• The Union Cabinet approves revising and realigning various components of Department of Animal Husbandry & Dairying Schemes and Special livestock
package for leveraging the investment of Rs 54,618 crores.• The Union Cabinet approves the continuation of National AYUSH Mission, as a Centrally Sponsored Scheme from 1st April 2021 to 31st March 2026
with financial implication of Rs 4607.30 crores.• The Union Cabinet approves change of nomenclature & mandate of North
Eastern Institute of Folk Medicine (NEIFM) as North Eastern Institute of Ayurveda & Folk Medicine Research (NEIAFMR).• The Union Cabinet approves scheme for promotion of flagging of merchant ships in India by providing subsidy support to Indian shipping companies in global tenders floated by Ministries and Central Public Sector Enterprises (CPSEs).• The Dearness Allowance (DA) for Central Government employees and pensioners has been increased from 17% to 28%. This will be applicable
from 1st July 2021