Kazakhstan encourages leather and wool processing

Prime Minister Alikhan Smailov in response to a parliamentary inquiry said that the maximum amount of compensation for the construction of enterprises for the processing of wool will amount to 868 million tenge, World of NAN reports.

To recall, earlier cattle breeders have repeatedly complained that animal skins are simply disposed of and do not go into processing. At the same time, the state restricted the export of unprocessed hides and imposed duties, preventing additional earnings of livestock producers.

"The rules of subsidies for reimbursement of part of the costs incurred by the subject of agro-industrial complex in investments provides for reimbursement of costs in the construction of new and the upgrade of existing enterprises of tanneries and wool washers for the primary processing of hides and wool. Maximum amount of compensation for the construction of enterprises for processing wool is 868 million tenge, for expansion - 430 million tenge. For leather processing companies these amounts to 661 million tenge and 300 million tenge for expansion," Alikhan Smailov explained.

Thus, the government seeks to incentivize entrepreneurs for deep processing.

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