Introduces investment promotion measures and tax incentives for light-industry
15 Jan 2026
On 12 January 2026, the President of Uzbekistan adopted Decree No. UP-4 on expanding the participation of domestic light-industry enterprises in international supply chains and strengthening their position in external markets. The decree entered into force on 15 January 2026. It sets targets for 2026–2027 for textile and garment production, export growth, job creation and increased cooperation with foreign brands and sourcing companies. It also introduces institutional measures to promote investment, including the establishment of foreign representative networks under the Light Industry Development Agency to attract foreign investors and the creation of a Light Industry Project Office to develop investment projects in the textile, leather-footwear and silk value chains.
The decree also introduces a range of investment incentives for the textile and garment sector. From 1 January 2026 to 1 January 2028, cotton procurement points may pay property tax and land tax at a rate reduced by 50 per cent. From 1 January 2026 to 1 January 2029, sales to investors of textile and garment enterprise assets held on the balance sheets of commercial banks are exempt from VAT. Investors purchasing such assets are eligible for a 50 per cent reduction in property tax for one year, provided production is fully restored within six months. In addition, existing tax and customs benefits, including those related to profit tax, property tax, land tax, turnover tax, and customs payments, are extended to enterprises in the leather-footwear and fur industries, slaughter organizations and wool-processing organizations.
Nature of measure:
Type:
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Promotion and facilitation (Investment incentives, Investment promotion)
Industry:
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Primary (Agriculture, forestry and fishing)
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Manufacturing (Manufacture of textiles, wearing apparel, leather and related products, Other manufacturing)
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Services (Electricity, gas, steam and air conditioning supply, Wholesale and retail trade)
Inward FDI:
Yes
Outward FDI:
No
Sources:
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National Database of Legislation of the Republic of Uzbekistan / LexUZ, Presidential Decree No. UP-4 of 12 January 2026 on measures to expand participation of domestic light-industry enterprises in international supply chains and strengthen their position in foreign marke, https://lex.uz/ru/docs/7994713, 15 Jan 2026
