Union Cabinet increases DA of central government employees to 28%, effective July 1

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NEW DELHI: In what will bring joy to 48.34 lakh central government employees and 65.26 lakh retirees, the Union cabinet, headed by Prime Minister Narendra Modi, has increased the dearth allowance to 28 % against 17% of base salary, effective July 1, 2021.

However, the cost allowance and cost relief for the period January 1, 2020 to June 31, 2021 will remain at 17%, Information and Broadcasting Minister Anurag Thakur said in a briefing. to the media. In the aftermath of the devastating coronavirus pandemic, three high cost allowance payments to central government employees and retiree assistance had been frozen.

The Union cabinet also approved the maintenance of the reimbursement of national and central taxes and levies (RoSCTL) with the same rates as those notified by the Ministry of Textiles on exports of clothing / clothing and make-up excluding the rebate. duties and taxes on exported products (RoDTEP) regime. The program will run until March 31, 2024.

“RoSCTL’s lawsuit for apparel / apparel and apparel is expected to make these products competitive globally by reducing any built-in taxes / levies that are not currently reimbursed by any other mechanism. It will ensure a stable and predictable political regime and provide a level playing field for Indian textile exporters. In addition, it will encourage startups and entrepreneurs to export and ensure the creation of thousands of jobs, ”said the cabinet secretariat.

It is a globally accepted principle that taxes and duties should not be exported, in order to give exporters a level playing field in the international market. In addition to import duties and GST which are usually refunded, there are various other taxes / duties which are collected by central, state and local governments which are not refunded to exporters. These taxes and levies are integrated into the price of the final exported product. These integrated taxes and levies increase the price of Indian clothing and makeup items and make it difficult for them to compete in the international market.

Aware of the importance of the reimbursement of taxes, duties and integrated duties, the Ministry of Textiles first launched a State Tax Reimbursement Program (RoSL) in 2016. As part of this, exporters of clothing, clothing and made-up products were reimbursed taxes and integrated taxes through the budget of the ministry. In 2019, the ministry notified a new Rebate of State and Central Taxes and Levies (RoSCTL) regime. As part of this, exporters receive a duty credit certificate for the value of integrated taxes and levies contained in the exported product. Exporters can use this certificate to pay basic customs duties for importing equipment, machinery or any other input.

“Only one year after the launch of RoSCTL, the pandemic set in and it was felt that there was a need to provide a stable political regime for exporters. In the textile industry, buyers place long-term orders and exporters must define their activities well in advance, it is important that the political regime regarding the export of these products is stable, ”the statement added.

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