CENTRE...

Union information and broadcasting minister Anurag Thakur, briefing reporters on Wednesday, said DA and DR from January 1, 2020, to June 31, 2021, shall remain 17%, signalling that no arrears will be paid for the 18-month period. Thakur said the DA hike will cost the exchequer ₹34,400 crore annually. “The DA/DR hike amount is substantial and will give a boost to consumption even if 20% is saved. Fiscal deficit will increase marginally, maximum 0.1% of GDP,” said Madan Sabnavis, chief economist at Care Ratings.

Several employees’ unions, including central secretariat workers, teachers and corporation workers, wrote to Prime Minister Narendra Modi earlier this month, seeking restoration of DA and DR. They said given the high food and fuel prices, their dues should be settled.

Separately, the cabinet also approved the continuation of Rebate of State and Central Taxes and Levies (ROSCTL) with the same rates as notified by the textiles ministry on exports of apparel/garments and made-ups by excluding such items from the Remission of Duties and Taxes on Exported Products (RODTEP) scheme, which is still under work. The scheme will continue till March 31, 2024.

“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,” the Cabinet Secretariat said in a statement