President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On additional measures for the development of deep processing in the silk industry”.

The document said that till 1 August 2022, the silk industry enterprises are provided with subsidies to compensate up to 50 percent of the costs of transportation of 8 types of products by air and rail to the United States, the European Union and Turkey. The compensation will be paid due to the expense of the state budget.

Now, the cost of grain silkworm and other material and technical resources necessary for the production of cocoons, as well as mulberry seedlings, delivered by enterprises that are part of the Association "Uzbekipaksanoat" cocoon-producing entities, is not considered a turnover for the sale of goods (works, services).

Silk enterprises provide the conditions and the order provided for farms on acquisition of agricultural machinery on the basis of leasing, delivery of mineral fertilizers, seeds, means of chemical protection of plants and other material resources.

Starting from 1 January 2020, 50 percent of the collected fines for illegal cutting, damage or destruction of mulberry plantations are sent to the planting of new mulberry seedlings in the territory, where the offence was committed.

Tax benefits established by law for legal entities with an export share of more than 15 percent of the total revenue from the sale of goods (works, services) also apply to products made of raw silk and silk wool till 1 January 2021.

A procedure will be established for providing compensation from the State Fund for support of business development for interest expenses on bank loans, allocated in 2019 – 2022 to finance the cultivation of silkworm cocoons, including the issuance of an advance to silkworm producers.

Also, it is planned to take measures to increase the purchase price of live silkworm cocoons from their producers from 2020 to at least 20 percent, from 2021 – at least 10 percent.

Institutions have been established as part of the research Institute of silkworm breeding for the cultivation of mulberry silkworm in Ferghana, Samarkand, Khorezm, Kashkadarya and Surkhandarya regions.

Till 1 August 2021, Uzbekipaksanoat is allowed to place silkworm grains in the customs regime "processing outside the customs territory.

It also exempted from payment of customs payments (except fees for customs clearance) when imported into the territory of the Republic of silk cocoons grown in the result of export silkworm to neighboring countries.

UzDaily.com