Capital Network reported on June 18 that according to news released by the Atameken National Entrepreneurs Association of Kazakhstan, Kazakhstan has canceled export tariffs on uncombed and combed wool.
In 2019, the Shymkent branch of the Atameken Association proposed the elimination of wool export tariffs. The association said export duties accounted for 10% of the cost of wool. Due to the small domestic demand for wool in Kazakhstan, the imposition of tariffs has led to rising costs, making Kazakh wool products uncompetitive in foreign markets.
Kabyshtayev, chairman of the Shymkent Entrepreneurs Association, said that the annual wool processing capacity of Shymkent Cashmere Co., Ltd., the only wool processing enterprise in the city, More than 10,000 tons, but the actual annual output is only 1,000 tons. The reason is that the company mainly targets the Chinese market and paying tariffs makes it unprofitable for the company to export to China. At present, the company can only use 1% (10 tons) of self-produced washed wool to process finished products, and its inventory of washed wool has exceeded 1,000 tons. Companies have suspended production due to their inability to repay loans and pay fines on time. The imposition of additional tariffs not only affects product exports, but also puts Kazakhstan’s only large-scale wool processing company on the verge of bankruptcy. For this reason, the Shymkent Entrepreneurs Association has repeatedly called for the issue of abolishing wool export tariffs to be studied at the central government level.
Since 2019, the Atamecon National Entrepreneurs Association has been promoting the solution to this problem at different levels and has finally made progress. On June 9, 2021, the Ministry of National Economy of Kazakhstan issued an order announcing that the export tax rate for uncarded and combed wool would be adjusted to 0%, which will be effective until May 1, 2023.
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