The central government has extended the tax rebate on export of textiles till March 31, 2024, to help Indian exporters better face competition in the global market, the ministry of textiles said on Thursday.

In bid to boost exports and create jobs in the textile industry, the Ministry of Commerce and Industry has authorised the continuation of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) with the same rates as those announced by the Ministry of Textiles for exports of apparel/garments and made-ups until March 31, 2024.

In July 2021, the Cabinet had approved continuation of the Rebate of State and Central Taxes and Levies scheme till 2024. Under this scheme, taxes and levies such as mandi tax, stamp duty and cesses on fuel, power generation and input materials are refunded to exporters in the form of Duty Credit Scrip.

The scrip can be used to pay basic customs duty on import of equipment, machinery or any other input. The extension of the scheme is aimed at ensuring a stable and predictable policy regime, the government had said in a release in July 2021. India's apparel exports grew 30.4% to $16.02 bln in 2021-22 (Apr-Mar), according to the Apparel Export Promotion Council.

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