Centre may provide RoSL benefits to certain sectors under incentive package for exporters
New Delhi: The government may extend the Remission of State Levies (RoSL) to sectors including chemical and engineering as part of the proposed incentive package for exporters to boost the country's outbound shipments, an official said.
Currently, RoSL, which is to offset indirect taxes levied by states such as stamp duty, petroleum tax, electricity duty and mandi tax that were embedded in exports, is provided to textiles exporters.
The commerce ministry is working on an incentive package for labour-intensive sectors to promote shipments and address issues of exporters. It is holding meetings with the finance ministry on the matter.
As part of the package, the ministry is proposing several steps such as funds for rebate of state levies, creating system for online refund of GST (goods and services tax) and expansion of Niryat Bandhu Scheme, the official said.
Under this Scheme, mentoring is provided to the first-generation entrepreneurs.
Recently, Commerce and Industry Minister Suresh Prabhu said the ministry would provide support to exporters are they are facing several challenges.
"We are preparing a package which will ensure that exporters' woes are addressed properly. There have been challenges for the export sector over a period of time and one big challenge is credit," he said.
He also said the package would focus on labour-intensive sectors as it would help in creating jobs.
The Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said incentives would help promote exports, which is expected to touch $350 billion in 2018-19.
"Steps like online ITC (input tax credit) refund, one-time amnesty for fulfilling export obligation under Advance Authorisation and EPCG (Export Promotion Capital Goods) Scheme, and Merchandise Exports from India Scheme (MEIS) benefit for fabrics and yarn would boost exports," he said.
The Engineering Export Promotion Council (EEPC) has demanded a rebate on state levies to increase shipments.
During April-November this fiscal, exports rose 11.58 per cent to $217.52 billion.
Since 2011-12, the country's exports have been hovering at around $300 billion. During 2017-18, the shipments grew by about 10 per cent to $303 billion.