Uzbek President Signs Decree to Boost Leather and Footwear Sector

Tashkent, Uzbekistan (UzDaily.uz) — The President of Uzbekistan, Shavkat Mirziyoyev, signed a resolution on 1 July 2026 introducing additional measures to support the manufacturing of finished goods in the leather and footwear industry and to enhance the sector's export potential.

According to the document, leather production is targeted to reach 800 million square decimeters by 2027, up from 690 million in 2026. Footwear production is projected to grow to 115 million pairs, compared to 100 million pairs in 2026. The sector's export volume is expected to rise from US$110 million to US$150 million, while haberdashery production is planned to increase from 246 billion to 300 billion soums. The value added within the industry is targeted to grow from 860 billion to 1.2 trillion soums.

The resolution outlines a comprehensive financial support package for manufacturers. From 1 July 2026 to 31 December 2028, subsidies will be allocated from the Light Industry Support Fund. Enterprises producing finished leather will receive 350 soums per square decimeter of sold products. Manufacturers of footwear and haberdashery will be granted 1 million soums for each newly developed model, capped at 50 million soums per enterprise annually.

Additionally, the government will compensate 50% of the cost of imported shoe lasts and molds, up to a limit of US$10,000 per year for deliveries from European Union countries and US$5,000 for shipments from other nations. Companies opening brand stores and trading houses in administrative centers, Tashkent, and large cities with populations exceeding 100,000 people will receive a 50% reimbursement on premises rental costs during the first year, up to a limit of 100 million soums.

Entrepreneurs engaged in the collection of leather and wool raw materials will be exempt from corporate income tax, property tax, land tax, and VAT from 1 July 2026 to 1 July 2029. A corresponding draft law to introduce these amendments to the Tax Code is instructed to be prepared within three months.

The resolution also provides for the establishment of the Directorate for the Management of Leather and Footwear Industrial Zones as a limited liability company with a charter capital of US$23 million. Existing industrial zones in the Akhangaran district of the Tashkent region and the Shahrihan district of the Andijan region, covering a total area of 43.5 hectares, will be transferred to the management of the directorate.

For the construction of modern wastewater treatment facilities at leather and wool enterprises in the Tashkent and Syrdarya regions, 360 billion soums will be allocated from the state budget during 2026–2027. An additional 80 billion soums is designated for the creation of external engineering and communications infrastructure for the industrial zones.

Out of the US$33 million previously allocated for the development of the leather and footwear sector under a 2024 resolution, US$10 million will be directed through commercial banks to finance investment projects for up to 10 years at an annual interest rate of 5% with a three-year grace period. The remaining US$23 million will be contributed to the charter capital of the newly formed directorate.

Beginning 1 October 2026, the Light Industry Agency, in cooperation with the Uzbek-Korean Training and Practical Technopark, will organize continuous professional development courses for sector specialists, masters, and artisans. The training programs will cover profiles for fashion designers, marketers, and technologists, utilizing foreign instructors and experts.