Uzbekistan adopts measures to expand export potential of textile and garment and knitwear industry
Tashkent, Uzbekistan (UzDaily.com) -- President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures to further deepen reforms and expand the export potential of the textile and garment and knitwear industry”.
Starting from 1 April 2019, expenses related to the payment of interest on loans from commercial banks allocated to garment and knitwear enterprises in 2019-2021, exporting at least 80% of finished goods, will be covered by the State Fund for the Support of Entrepreneurial Development activities in the following order:
- in the amount of 25 percent of the interest rate on loans issued in national currency;
- in the amount of 50 percent of the interest rate on loans issued in foreign currency;
- refund to the taxpayer of the amount of value added tax, resulting from the application of the zero rate, is carried out in an expedited manner within 7 working days from the date of submission of the necessary documents in full;
- exclusive requirement to provide a bank guarantee for the sale of cotton fiber through exchange trading is canceled.
When selling cotton fiber of the 2019 harvest, the value added tax is calculated on the basis of the actual price of its sale.
An automated program will be developed to review applications from business entities to return the amount of value added tax generated by turnover taxed at a zero rate.
The President instructed to develop a "Concept for the accelerated development of the textile and garment and knitwear industry for the period 2019-2025," which envisages bringing the volume of exports of textile products to US$7 billion by 2025.
A single information portal of textile and garment and knitwear enterprises will be created.