As part of the latest legislative changes, a number of tax incentives are being introduced for entrepreneurs operating in the light industry and related sectors. These measures are aimed at supporting business activity, attracting investment, and ensuring sustainable development of production capacities.
Under the Presidential Decree, starting from January 1, 2026, a system will be implemented that allows light industry enterprises to sell surplus electricity generated using renewable energy installations with a capacity of up to 5 MW. This applies to electricity produced in excess of the enterprise’s own operational needs.
Taking into account the seasonal nature of cotton procurement activities, from January 1, 2026 to January 1, 2028, cotton procurement centers will be allowed to pay property tax and land tax at a reduced rate of 50 percent.
From January 1, 2026 to January 1, 2029, the following tax incentives will apply:
- property assets of textile and garment-knitwear enterprises recorded on the balance sheets of commercial banks will be exempt from value-added tax (VAT) when sold to investors;
- investors who purchase the property assets of textile and garment-knitwear enterprises from commercial banks will be allowed to pay property tax at a reduced rate of 50 percent for a period of one year, provided that the production activities of the acquired enterprises are fully restored within six months;
- the validity period of tax incentives related to profit tax, property tax, land tax, and turnover tax for leather and footwear enterprises, fur-processing enterprises, as well as organizations engaged in livestock slaughtering and hide processing, will be extended.
These tax measures are designed to ease the fiscal burden on entrepreneurs, stimulate investment activity, promote the use of renewable energy sources, and support the recovery and modernization of strategically important industrial sectors.