Uzbekistan recently issued a presidential decree on measures to stimulate deep processing, production and export of finished products with high added value by textile and clothing and knitwear enterprises. The decree established the Textile Industry Support Fund. The decree mandates several steps from February 1 this year to January 1, 2025.
Enterprises that have implemented projects for the production of dyed fabric, mixed and dyed fabric products in the Republic of Karakalpakstan and regions have been allocated a subsidy of 10 percent of the cost of equipment purchased under these projects, but not exceeding the equivalent of $500,000.
Enterprises that purchase equipment for the production of dyed fabric, mixed and dyed fabric products, as well as yarn, in which man-made fibres account for more than 80 percent, will be offered loans in foreign currency to pay a 15 percent initial payment for up to seven years, including a grace period of three years.
Enterprises exporting dyed fabric, dyed fabric and ready-made garments and knitwear are provided with loans in foreign currency in the amount not exceeding $3 mn for a period of up to 1 year, including a grace period of up to 9 months;
Enterprises that earn from the sale of dyed fabric, finished garments and knitwear, including through a commission agent, and whose share of exports of these products is at least 80 percent, are granted the right to pay a social tax at a of 1 percent and deferral of debt repayment on property tax of legal entities for up to three years, according to a report.
According to the decree, it is necessary to extend until January 1, 2024, the terms for the State Fund for Support of Entrepreneurship to provide compensation and guarantees for loans received by exporters in commercial banks for pre-export financing, and also to extend this procedure to all exporting enterprises.
Until July 1, 2022, the development and launch of the System for Mandatory Automated Accounting for Cotton Fibre will be ensured.
