Uzbekistan targets $150 million in footwear exports by end of 2027

The government aims to increase leather production to 690 million square decimeters by the end of 2026 and 800 million square decimeters in 2027. Footwear production is expected to reach 100 million pairs this year and 115 million pairs next year, while the sector's total value added is projected to grow to UZS 860 billion and UZS 1.2 trillion, respectively.

The resolution sets footwear export targets of $110 million for 2026 and $150 million by the end of 2027. The value of leather goods production is also expected to rise from UZS 246 billion this year to UZS 300 billion next year.

To encourage raw material collection, companies engaged in collecting hides and wool will be exempt from profit, property, land, and turnover taxes for three years, from July 1, 2026 through July 1, 2029. The Ministry of Economy and Finance has been instructed to submit amendments to the Tax Code to the Cabinet of Ministers within three months.

The government will also subsidize part of the interest paid on working capital loans taken out by hide and wool collectors. For loans denominated in Uzbek soums, compensation will cover interest up to 10 percentage points above the Central Bank's policy rate, while foreign currency loans will qualify for compensation of up to 5%.

The resolution introduces several additional support measures for manufacturers. Until the end of 2028, businesses producing and selling finished leather products will receive UZS 350 for every square decimeter of finished leather from the Light Industry Support Fund.

Footwear and leather goods manufacturers will be eligible for subsidies of UZS 1 million for each new product model introduced into production. Annual support for a single company will be capped at UZS 50 million.

The fund will also reimburse up to 50% of the cost of shoe lasts and molds. Companies may receive up to $10,000 a year for equipment imported from European Union countries and up to $5,000 for imports from other countries.

Manufacturers investing in wastewater treatment systems will be able to recover up to 50% of their spending on chemicals and reagents used in treatment facilities.

The state will also help finance the expansion of retail networks. Producers of footwear and leather goods opening branded stores or trading houses in Tashkent, Nukus, regional centers, and other cities with populations exceeding 100,000 will be reimbursed for 50% of their first-year rental costs, up to UZS 100 million

Starting September 1, leather industry enterprises will also receive price preferences of up to 15% in public procurement, depending on their use of locally sourced materials, the number of jobs they create, and whether they own a registered brand.