Uzbekistan's Tax Lucky Ones: To Whom the State Extended the Preferential Regime

**Tax Beneficiaries of Uzbekistan: To Whom the State Has Extended the Preferential Regime**

In Uzbekistan, several sectors at once have received significant tax relief. The Tax Committee recalled the current benefits for enterprises in the leather, footwear, and fur industries, livestock slaughter and leather raw material processing organizations, as well as for participants in sericulture and the silk industry.

Most of these preferences are valid until January 1, 2029, meaning that businesses have several years of relatively predictable tax conditions.

### Leather and Footwear — Exempt from Four Key Taxes

For enterprises in the leather, footwear, and fur industries, as well as organizations engaged in livestock slaughter and leather raw material processing, the broadest set of tax benefits is provided.

Until January 1, 2029, they are exempt from paying: corporate income tax; property tax; land tax; turnover tax.

In essence, this is not a single targeted measure, but rather four areas of tax burden at once — from company profits to the property and land involved in operations.

For industries with large production areas and high raw material processing costs, such a combination can significantly reduce the overall fiscal burden and create incentives to expand output.

### Sericulture Received a Separate Package of Incentives

A separate regime has been established for cocoon producers.

Until January 1, 2029, cocoon producers are exempt from paying income tax. At the same time, entities paying them wages are exempt from social tax.

But the tax advantages of the silk industry do not end there.

From January 1, 2026, to January 1, 2029, additional relief is provided for sericulture clusters.

They are exempt from: property tax; land tax.

At the same time, for enterprises in the silk industry, the corporate income tax rate is set at just 2%. Another preference concerns enterprises that have introduced the production of silk fabrics and finished silk products. For them, the social tax rate is set at 1% instead of the standard regime.

### The State Bets on Processing

The set of benefits shows that tax policy is oriented not only toward supporting raw material production but also toward developing the entire processing chain — from cocoons and leather raw materials to finished products.

This is particularly noticeable in the silk industry: separate advantages are received by cocoon producers, clusters, and enterprises manufacturing silk fabrics and finished products.

For business, this means a reduction in tax expenses, and for the state, an attempt to stimulate investment and increase the depth of processing within the country.

At the same time, an important point is that most of the listed measures have a clearly limited duration. Tax benefits for these industries are mainly calculated until the beginning of 2029, so for companies, they can become a temporary window for modernizing production, expanding capacity, and increasing the output of products with higher added value.

In other words, the state offers businesses not just a tax discount, but several years of a relatively preferential regime — with the expectation that during this time, the industries will be able to become more competitive.