20 August 2019

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In focus
13 Feb  2019 1229

Exports of textile products planned to reach $7 billion by 2025

This is stated in the President’s Decree released on February 12. The changes also affected the cotton fiber tax, payments to exporters, the introduction of VAT, the concept of garment and knitwear.

Starting from the 2019 harvest , when selling cotton fiber, the value added tax will be calculated of the actual price of its sale, regardless of the world prices.

From April 1, 2019, the exporting enterprises of garment and knitwear products with a volume of at least 80 percent of products sent abroad will cover the costs associated with the payment of interest on loans. This will be done at the expense of the State Fund for the Support of the Development of Business Activities under the Cabinet of Ministers.

The VAT value that was formed because of applying the zero rate will be returned to the taxpayer within 7 working days from the date of the submission of the necessary documents.

Sale of cotton fiber through exchange trading now does not demand a bank guarantee. However, the parties will sign agreements among themselves on a contractual basis.

The Ministry of Finance and the State Tax Committee  should develop and implement an automated program for reviewing applications from business entities to return the amount of value added tax generated by turnover taxed at a zero rate.

In three months, they will approve the Concept of Accelerated Development of the Textile and Garment and Knitting Industry for the 2019-2025.

 

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