Textile companies are provided state support
According to the resolution of the President “On measures for further deepening reforms and expanding the export potential of textile, garment and knitwear industry”, textile companies are provided state support.
From April 1, a new order is established when part of costs associated with payment of interest on loans allocated to garment and knitwear enterprises in 2019-2021 is covered by the State Fund for Supporting Business Development. This applies only to those companies that export at least 80% of their products.
From the same date, the refund to the taxpayer of the amount of VAT resulting from applying a zero rate is carried out in an expedited manner within seven working days.
Wherein the requirement for providing information that is available to the state tax service, including the act of reconciliation of taxes and other obligatory payments and calculations of value added tax to be canceled.
The exclusive requirement for provision of a bank guarantee for the sale of cotton fiber through exchange trading is also canceled. Wherein, the method of ensuring the execution of obligations is determined between the parties on a contractual basis.
In addition, starting from the harvest of 2019, in the sale of cotton fiber to organizations of the country, VAT is calculated based on the actual price of its realization, regardless of world prices.