Tax incentives will be introduced for the light industry

From 2026 to 2029, tax incentives and reliefs will be introduced in Uzbekistan for light industry and related sectors. This was reported by Zamin.uz.

These measures are aimed at increasing production volume, attracting investments, and developing the industry. Additionally, a mechanism for selling surplus electricity generated from renewable energy sources will be gradually implemented.

Starting from January 1, 2026, light industry enterprises using renewable energy devices with a capacity of up to 5 MW will have the opportunity to sell the surplus electricity produced beyond their own needs. This will create an additional source of income for the enterprises.

Furthermore, reliefs have also been introduced for cotton preparation points. From January 1, 2026, to January 1, 2028, considering the seasonality of these points' activities, property and land taxes will be paid at a reduced rate of 50 percent.

This decision will especially help reduce expenses during the off-season. Other benefits will also be in effect during 2026–2029.

For example, when the property of textile and sewing-knitting enterprises on the balance sheets of commercial banks is sold to investors, it will be exempt from value-added tax (VAT). Also, investors who purchase these enterprises will pay property tax at a reduced rate of 50 percent for one year, provided they restore production activities within six months.

The validity of existing tax incentives for leather-footwear, fur, and livestock-related enterprises will be extended. These measures serve the development of the industry and the increase of production volume.

In particular, the use of renewable energy sources reduces costs and creates new opportunities in the energy market. Now the main question is how effective these incentives will be in practice and whether enterprises will be able to turn them into real results?

Because although plans on paper look good, industrial development is assessed through production volume and new jobs. Source: Zamin.uz.