Wedoany.com Report-Nov. 29, Tajikistan's draft State Budget Law for 2026 introduces targeted tax incentives to support domestic wheat and oilseed processing enterprises, effective from 1 January 2026.

Key measures include a reduced value-added tax (VAT) rate of 10%—down from the standard 14%—for companies that process oilseeds and sell vegetable oil, as well as for enterprises that process wheat and market processed wheat products. An even lower VAT rate of 7% will apply to sales of cake and meal used as animal and poultry feed.

The incentives aim to boost local production capacity and improve food security. Tajikistan currently meets only 21% of its annual vegetable oil requirement, which exceeds 150,000 tonnes according to national nutritional standards. The country's 72 existing vegetable oil producers have combined annual capacity of 25,000–30,000 tonnes.

Through the new measures, authorities plan to increase domestic vegetable oil output by approximately 20% in the coming years while reducing reliance on imported supplies by around 7%. The tax benefits are designed to encourage investment in processing facilities, enhance value addition to locally grown crops, and strengthen the overall agricultural value chain.