A Presidential Decree “On measures to stimulate deep processing, production and export of finished products with high added value by textile and clothing and knitwear enterprises” was adopted.
The Decree established the Textile Industry, Support Fund.
According to the Decree, from 1 February 2022 to 1 January 2025:
enterprises that have implemented projects for the production of dyed linen, mixed and dyed fabric products in the Republic of Karakalpakstan and regions are allocated subsidies in the amount of 10 percent of the cost of equipment purchased under these projects, but not exceeding the equivalent of 500 thousand US dollars;
enterprises that purchase equipment for the production of dyed fabric, mixed and dyed fabric products, as well as yarn, in which man-made fibers account for more than 80 percent, are allocated loans in foreign currency to pay a 15 percent initial payment for up to 7 years, including a grace period 3 years;
enterprises exporting dyed fabric, dyed fabric and ready-made garments and knitwear are provided with loans in foreign currency in the amount not exceeding 3 million US dollars for a period of up to 1 year, including a grace period of up to 9 months;
enterprises in the total revenue of which from the sale of dyed fabric, dyed fabric and finished garments and knitwear, including through a commission agent (attorney), the share of exports of these products is at least 80 percent, are granted the right to:
payment of social tax at a tax rate of 1 percent;
deferral of debt repayment on property tax of legal entities for up to three years with notification of the tax authorities without sending an application to local government authorities. At the same time, after the expiration of the grace period for this tax, the tax debt and accrued interest are paid in installments over a period equal to the grace period.
According to the Decree, it is necessary to extend until 1 January 2024 the terms for the State Fund for Support of Entrepreneurship to provide compensation and guarantees for loans received by exporters in commercial banks for pre-export financing, and also to extend this procedure to all exporting enterprises.
Until 1 July 2022, the development and launch of the Mandatory Automated Accounting System for Cotton Fiber will be ensured.
