Uzbek textile, clothing, knitwear firms to be offered subsidies, loans




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 per cent 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 fibers account for more than 80 per cent, will be offered loans in foreign currency to pay a 15 per cent initial payment for up to seven years, including a grace period of three years.

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 exporting dyed fabric, dyed fabric and ready-made garments and knitwear are provided with loans in foreign currency in the amount not exceeding 3 million US dollars 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 per cent, are granted the right to pay a social tax at a of 1 per cent and deferral of debt repayment on property tax of legal entities for up to three years, according to Uzbek media reports.

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.

Fibre2Fashion News Desk (DS)





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Originally posted 2022-01-28 14:29:56.

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