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Textile producers seek cut in export tax on yarn


Uzbekistan, Tashkent – Academy of Sciences Podrobno.uz.

Textile producers of Uzbekistan are seeking to reduce the export tax on yarn. They need support in the face of geo-economic instability, says Academy of Sciences Podrobno.uz, citing data from the Uztekstilprom Association.

The program for the development of the textile industry developed in the country provides for a phased reduction in the export of yarn, by increasing its processing within the country and exporting finished garments and knitwear.

In particular, by the presidential decree “On urgent measures to support the textile and clothing and knitwear industry”, when exporting cotton yarn and knitted fabric (except for dyed knitted fabric) across the customs border, from January 1, 2021, a fee is charged for each kilogram of exported yarn in the amount of 0. $01, from January 1, 2022 for each kilogram of exported yarn and knitted fabric – $0.05, from January 1, 2023 – $0.1, from January 1, 2025 – $0.2.

If you look at the numbers, now 100% processing of 1.1 million tons of cotton fiber produced in the republic has been achieved. However, 40% of the yarn produced is processed domestically, while the remaining 60% is supplied to foreign markets. The share of yarn accounts for 45% of the total share of exports of textile products of the republic. The main sales markets are Türkiye, China, CIS countries.

In 2023, according to the Strategy for the Development of the Textile Industry, it is planned to increase the export of textile products by 1.5 times, primarily by bringing the deep processing of yarn to 60% and expanding the production of high value-added products, including home textiles and carpets , bringing the annual processing of artificial fiber to 80 thousand tons, localization and development of more than 50 new types of products.

In order to mitigate the impact of geo-economic instability on the activities of enterprises in the industry and support local producers, including spinning mills and clusters, in order to maintain their competitiveness in the foreign market, the Uztekstilprom Association developed and submitted for approval a draft presidential decree that provides for changes in the amount of established fees.

In particular, it is planned that from January 1, 2023, a new fee will be set in the amount of $0.05 for each kilogram of exported yarn (now $0.1 – editor’s note), that is, the fee will remain at the level of 2022.

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