Why is this important
Reducing the tax burden and writing off penalties should ease the financial situation of businesses, stimulate exports, and increase the industry’s competitiveness in foreign markets.
What happened
- The social tax for textile enterprises and clusters has been reduced from September 1 to 1% for three years.
- 377 billion soums in penalties for clusters’ debts for cotton as of August 1 have been written off.
- Goal: to bring textile exports to $3.3 billion per year.
- The plan is to increase the volume of textile and knitwear production by 9% to 146 trillion soums in 2026.
- Imported blended fabrics, as well as materials for the leather and silk industries, are exempt from customs duties for the same period.
Context
Previously, the textile industry already received benefits and subsidies: cost compensation, loan relief, and financial recovery measures.
Textile exports for the first 8 months of 2025 amounted to just over $1 billion, which is a quarter lower than the same period last year. Businesses expected easing of conditions, as many companies are experiencing pressure due to debts, raw material costs, and high expenses.
