By Justin Mays:
Following our previous news article about President Recep Tayyip Erdogan slashing the VAT on real estate, he also added medical equipment and consumer products to the list.
On the 28th of March after a cabinet meeting, the Turkish President had this to say, “We have decided to cut the VAT on necessities such as detergent, soap, toilet paper, napkins, and baby diapers, from 18 percent to 8 percent”.
VAT for electricity used in agricultural irrigation and residences was reduced from 18 to 8 percent in February together with the value-added tax on all kinds of certified seed and saplings which was reduced from 8 to 1 percent.
With the new measures implemented, catering services’ VAT charges will be reduced from 18 percent to 8 percent. These include hotels and restaurants. The President added that more administrative reforms are underway to simplify VAT schemes.
Moreso, VAT for houses that are smaller than 150 square meters has been set at 8 percent. This move was put into effect to reduce the burden on the construction industry. “All those measures are part of the government’s program designed to fight against inflation and efforts to protect citizens against the high cost of living”, added President Erdogan.
Medical equipment that is listed on the Health Ministry’s respective legislative will also have its value-added tax slashed.
In a bid to make Turkey one of the 10 largest economies in the world, Erdogan said, “While the economic crisis in other countries triggered by the COVID-19 pandemic and aggravated by the Russian-Ukraine conflict, Turkey continued on its path with determination through investments, creating jobs, exports and production”.