Uzbekistan has unveiled a comprehensive package of tax and customs incentives aimed at revitalizing its textile and knitwear industries, supporting the government’s target of increasing production by 9 percent and raising exports to $3.3 billion by 2026. These measures are designed to ease financial burdens on textile enterprises and enhance competitiveness in both domestic and international markets.
A key element of the incentives is the restructuring of debts for cotton-textile clusters. Companies with collateralized assets will benefit from deferred interest payments until the principal debt is fully repaid. Additionally, enterprises that have complied with payment obligations on time will receive a refund amounting to half of the interest they have already paid. Penalties on overdue interest as of August 1, 2025, will be written off to provide further financial relief.
From September 1, 2025, textile and knitwear enterprises, including cotton-textile clusters, will enjoy a reduced social tax rate of 1 percent for three years. This reduction is intended to lower operating costs and encourage investment in the sector.
To support raw material availability, Uzbekistan will waive customs duties on blended fabrics, textiles, and raw materials used in leather and silk industries that are not produced locally. This measure aims to ensure smooth supply chains and reduce the cost of production inputs.
Farmers also stand to benefit from the new policies, as the government will provide subsidies of one million soums for each tonne of raw cotton sold through exchange trading. This incentive is expected to secure stable cotton supplies for processors. Furthermore, clusters and enterprises that finance cotton cultivation or procurement using their own funds will receive reimbursements covering 10 percent of the costs.
These initiatives reflect Uzbekistan’s broader strategy to stimulate economic growth by enhancing the textile sector’s production capacity, export potential, and overall sustainability. By easing financial pressures and improving access to materials, the government hopes to position Uzbekistan as a stronger player in the global textile market by 2026.
