Tanners of Uzbekistan were granted tax incentives
Uzbek enterprises in the textile and leather industries were granted tax incentives, charges were imposed on the export of semi-finished leather and cotton yarn. This is expected to stimulate the production and export of higher value-added products made of local materials.
Tax incentives were granted to enterprises in the textile, clothing, leather and fur industries by a presidential decree on the development of light industry and the promotion of finished goods.
Benefits will begin to apply from January 1, 2020. Thus, enterprises, having a share of export of finished sewing and knitwear of at least 60% in the total revenue, are exempted from property tax for a period up to January 1, 2023.
Companies, applying modern automated slaughtering complexes and leather processing enterprises are also freed from paying land tax until January 1, 2023.
The tax base for the tax on profits for enterprises in the textile, sewing, knitting, leather, shoe and fur industries is going to be reduced during the next seven years in equal shares by the amount of expenses for the construction of modern sewage and sewage facilities.
At the same time, from January 1, 2021, fees for the export of semi-finished leather and cotton yarn are set at the level of 10% of the cost of exported products and at $ 0.01 for each kilogram of exported yarn, respectively.
The decree approved the target parameters for the production and export of textile, sewing, knitting, leather, footwear and fur products with high added value for the period 2020–2025.
As noted, the volume of production and export of textile and sewing-knitwear products will be estimated at $ 4.3 billion by the end of 2019, and leather, footwear and fur products - almost $ 350 million. By 2025, it is planned to increase their production by 3.5 times and 6.4 times, bringing them up to 15 billion and 2.2 billion dollars, respectively.