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Benefits Stimulating Business

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Benefits Stimulating Business

Manufacturing enterprises in Uzbekistan have been growing in number of late, so have the exports of quality and competitive products.

The President’s resolution on measures to further stimulate the development and growth of the export potential of the leather and footwear and fur industry is an important guide to action and contributes to creating opportunities for establishing new directions in production and eliminating existing shortcomings.

“The association Uzbekcharmpoyabzali has been transformed into the Association Uzcharmsanoat, its main tasks have been defined,” said Akbar Ruziev, representative of Uzcharmsanoat in Navoi region. “From now on, leatherworking enterprises, companies engaged in the production of fur-bearing raw materials, karakul smuts and wool, their storage and processing, the production of leather goods, and other organizations can voluntarily join this organization. Until 1 January 2023, members of the association are granted tax and customs privileges. In particular, they are exempt from income and property tax, a single tax payment for micro-firms and small enterprises, as well as mandatory contributions to state trust funds, and a number of customs payments.”

In addition, it is important that since June 1 of this year, the requirement to provide a document confirming the origin of its own production has been abolished for the application of the income tax exemption for individuals when selling to corporate entities large and small cattle, tannery, fur and fur goods, astrakhan raw materials and wool. At the same time, the resolution provides for the engagement of foreign specialists to train qualified personnel, retrain them, achieve high quality in production.

Starting from the 2018/2019 academic year, specialists will be trained at the Tashkent Institute of Textile and Light Industry majoring in “Technology and Design of Leather and Fur Products”, “Technologies and Equipment: Leather and Fur, Karakul” and “Technologies and Equipment: Shoes and leather goods”.

The Navoi region also outlines specific measures to develop tannery. Large-scale work has been done in this direction over the past two years. In 2018-2019, a total of 7 projects aimed at the development of the industry were implemented in the region.

Slaughterhouses were built in Karmana, Kyzyltepa, Navbahor and Navoi districts, which fully meet sanitary requirements. In modern slaughterhouses, built this year in Nurata and Khatyrchi districts, work is underway to equip them. At all slaughterhouses, control over the observance of cleanliness is established, oversight secures supply of only high-quality meat products to the market. Modern equipment in automated mode performs work on slaughtering cattle, cutting into parts, cleaning. In 2018, the head of the private enterprise Sher Kamol Navoi of the Karmanina district, M. Oblaev, signed a contract with the Ministry of Preschool Education with a total cost of over 3 billion soums. Currently, the company, where 7 people received permanent job, provides preschool educational institutions of the region with quality meat.

One of the members of the association is the limited liability company Real Wool Eksport in the town of Ishchilar, engaged in the processing of camel and sheep wool in great demand bоth in the domestic and foreign markets. This enterprise, established in 2013, is capable of producing 3-3.5 tons of quality products daily. The company exports half-finished wool yarn under the brand “Made in Uzbekistan” to Russia and China.

“Comprehensive support for small business and private entrepreneurship is bearing fruit,” says the head of the enterprise Sh. Korakulov. “Last year we exported products for $ 400 thousand. Automated modern machines are managed by 22 specialists. Our team mainly consists of young people; all conditions for labor and recreation of employees are created.”

UzA