Uzbekistan announces tax, customs incentives for textile enterprises

Measures to back financial recovery include restructuring the debts of cotton-textile clusters on loans issued from the State Agricultural Support Fund for the 2022-2023 harvest.

For clusters with collateralised assets, interest payments will be deferred until the principal is repaid. Those who met obligations on time will be refunded half of interest paid, while accrued penalties on overdue interest as of August 1, 2025, will be written off.

Farmers will receive subsidies of 1 million soums this year for each tonne of raw cotton sold to processors via exchange trading to ensure uninterrupted cotton harvesting. Clusters and enterprises financing cotton cultivation or procurement with their own funds will be reimbursed 10 per cent of its cost, according to domestic media reports.

Beginning September 1, a reduced social tax rate of 1 per cent will be imposed for three years on cotton-textile clusters and textile and knitwear enterprises. In addition, customs duties will be waived off on blended fabrics, textiles and raw materials for the leather and silk industries not produced in Uzbekistan.

ALCHEMPro News Desk (DS)