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Textile enterprises will receive loans of up to $2 million secured by raw materials
On January 12, Shavkat Mirziyoyev signed a decree aimed at supporting local textile enterprises in foreign markets and expanding their participation in global supply chains. This was reported by the Ministry of Justice.
According to the decree, textile enterprises will be classified into three categories based on their financial and economic performance indicators — “green,” “yellow,” and “red.” A program of targeted support and assistance for their operations is planned to be developed.
Banks will be able to provide companies with loans of up to $2 million using the resources of the Agency for the Development of Light Industry. The collateral for such loans will be the raw materials produced or purchased by the enterprises.
Companies with overdue liabilities that have been recognized as requiring financial rehabilitation will be granted extensions on previously obtained loans for a period of up to 7 years.
In addition, enterprises will be able to make installment payments on loans taken to purchase raw cotton in 2026–2027. In particular, payments for January–February may be made in equal portions over the final six months in accordance with the loan repayment schedule.
Furthermore, textile enterprises will be allowed to sell electricity generated by solar panels installed by them, with a total capacity of up to 5 MW, in excess of their own needs. A special sales system is to be launched for this purpose.
For cotton procurement points, 50% reduced rates for property tax and land tax are being introduced, taking into account the seasonal nature of their operations. These rates will remain in effect until January 1, 2028.
The sale by banks of property belonging to textile and garment/knitwear enterprises to investors will be exempt from VAT until the beginning of 2029.
Investors who purchase production facilities will be able to pay property tax at a rate 50% lower than the standard rate during the first year after the transaction. However, this benefit will apply only on the condition of the full launch of the enterprise within six months.
The decree also provides for the extension of tax incentives on profit tax and property tax, as well as land tax and turnover tax, for leather manufacturing and leather processing enterprises.
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