Uzbekistan to subsidize cotton clusters and accelerate VAT refunds

According to the Ministry of Justice, the document introduces direct financial aid for producers. Cotton-textile clusters and their subsidiaries that cultivated cotton on their designated plots during the 2025 season will receive a subsidy of UZS 3,000,000 per hectare. To ensure transparency, the funds will be disbursed only after the Uzbekcosmos Agency verifies the actual cultivation on the specific land plots mapped out by the Ministry of Agriculture.

The state is also expanding its support for advanced manufacturing within the textile supply chain. Enterprises that successfully launched projects to produce dyed fabrics, mixed fabrics, or dyed yarn before June 1, 2026, are eligible for subsidies to offset the cost of purchasing specialized dyeing equipment. This financial support will be drawn from the remaining funds initially allocated under a January 2022 presidential decree.

Furthermore, the government is expediting tax processes to improve cash flow for reliable businesses. Until July 1, 2027, cotton-textile clusters and textile enterprises holding a rating of "A" or higher on the national business sustainability index will benefit from accelerated value-added tax (VAT) refunds. The return of negative VAT balances for these qualified companies will be processed within 20 days without undergoing standard pre-refund tax audits.