In a recent video conference led by President Shavkat Mirziyoyev on December 18, 2023, Uzbekistan announced a series of initiatives aimed at promoting and supporting the textile sector, with a particular focus on companies boasting international brands in their portfolio, president's press service reports. The key priorities include enhancing the production of synthetic fiber, dyeing processes, and the finishing of ready-made garments.
The significant highlights of the announced measures are as follows:
Financial Support: The Reconstruction and Development Fund will allocate $200mn for new high-value-added projects in the textile sector.
Infrastructure Development: Large treatment facilities will be constructed in regions where new dyeing facilities are planned.
State Coverage: The cost of the treatment plants will be covered by the state.
Project Incentives: For 20 projects that have commenced construction of a paint shop by February 1, 2024, there will be a $30mn subsidy, constituting 15% of the resource.
Export Facilitation: Textile enterprises implementing international sanitary standards can avail themselves of additional credit or leasing through a collateralized letter of credit for export practices.
Specialized Workforce: Each region will attract 10 highly qualified foreign specialists, creating centers for designers, marketers, and constructors.
In addition to these, brand engagement benefits were introduced:
Cost Coverage: Companies producing under prestigious international brands will have costs related to international standards, ecology, and certification covered.
Customs Duty Exemption: Raw materials necessary for products manufactured under well-known brands are exempt from customs duties, provided that at least 60% of the production is localized.
Tax Exemptions: Local entrepreneurs producing at least 30% of their products under a brand name are granted tax exemptions and preferences, aligning with those provided to enterprises with foreign investment.
Tax Benefits for Specialists: Specialists such as technologists, designers, and marketers hired from large brands will not be subject to salary deductions, with exemptions ranging from UZS 350,000 ($28) to UZS 10mn ($806) per month for one foreign specialist.
Lastly, for the production of synthetic fiber yarn, 15 projects are set to be implemented by August 1, 2024, producing a total of 125,000 tons. The breakdown includes projects in various regions, such as Kashkadarya, Bukhara, Khorezm, Karakalpakstan, Syrdarya, Samarkand, and Surkhandarya.
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