Mirziyoyev approves reduction of duties on furniture raw materials

President Shavkat Mirziyoyev has approved the reduction of import duties on raw materials such as fittings, accessories, paint, glue, and particle boards (DSP) in order to lower the production costs of furniture. This was announced today, May 26, during a video conference chaired by the president on the future priorities for developing local industry.

It was noted that imported raw materials account for 50–60 percent of the production cost in the furniture industry. Manufacturers had requested lower duties on items like fittings, accessories, paint, glue, and DSP to reduce overall costs.

“To ensure our national products remain competitive, I approve this initiative,” said the president.

Relevant officials were instructed to draft a resolution setting import duties at 1 percent for a period of three years on 14 types of raw materials, fittings, and accessories. Additionally, the centralized import of wood and wood-based materials for furniture production will be organized.

According to the report, 920 new furniture manufacturing enterprises were launched last year alone. The industry produced goods worth 6.7 trillion sums.

It was also mentioned that 25–30 percent of furniture is currently being made in households. Many small-scale manufacturers are striving to transition from home-based production to industrial-level operations. Therefore, individual entrepreneurs will be allowed to employ up to five workers for furniture production. Young entrepreneurs looking to launch or expand their business will be eligible for loans of up to 5 billion soums at 18 percent interest for a term of seven years.

At the “Furniture Industry Centers” in Oltinko‘l and Khonqa, more than 100 enterprises are already equipped with modern machinery and actively producing furniture. Entrepreneurs who previously worked in cramped home spaces have now moved into integrated complexes operating under a cluster model. New centers based on the Khonqa model will be launched in Sharof Rashidov, Yangi Namangan, Pastdargʻom, Oʻrtachirchiq, Kuva, Buvayda, Yunusabad, and Uchtepa districts.

Last year, Uzbekistan's furniture exports reached \$20 million. It was noted that by focusing on quality, design, and branding, exports could increase tenfold using current production capacity. To support this, the government will cover 50 percent of the costs for international certification and the salaries of foreign designers, marketers, and engineering technologists invited to work in the sector.

Additionally, the reimbursable exhibition space for international trade fairs will be expanded from 20 to 40 square meters. Officials were tasked with involving qualified specialists and organizing modern skills training for 1,000 furniture makers annually.