Knitwear exporters in Tirupur have urged the Central government to hasten 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. As per a KNN India report, popularly known as embedded taxes like cess on power, tariff on petro products and tax on transport, ROSCTL is offered to the micro, small and medium enterprises in the form of scrips.

Companies can sell these scrips in the market or pawn it as surety in banks and mobilize some funds for meeting their urgent financial commitments, says S Sakthivel, Executive Secretary, Tiruppur Exporters Association (TEA). Raja M Shanmugham, President, TEA adds, impacted by the second COVID-19 wave, the knitwear exports sector in Thirupur is struggling to meet statutory financial commitments every month. Between January 1, 2021 and August 31, 2021, India exported ready garments worth Rs 75,250 crore and the ROSCTL worth Rs 3,750 crore is pending on these exports, adds Shanmugham.