A new step is taken in the economy in order to relieve both the low-income and the sector. As explained by the AKP’s economic staff, the Value Added Tax (VAT), which was enacted 37 years ago, is being reduced and simplified.
It is stated that with the acceleration of the simplification of VAT, which is deducted from basic food and necessities, which has been on the agenda of the Ministry of Treasury and Finance for a while, the prices of some products will also be reduced. The regulation to be made to simplify the rates in VAT, speed up the return processes, and abolish this tax on products and services such as food and cleaning products is expected to come into force shortly.
It is aimed to apply a ‘single rate’ instead of different rates in retail and wholesale sales.
In the past days, Finance Minister Nureddin Nebati gave the signals of this change by saying “A revolution is coming in VAT”. AKP economic staffs also stated that they focused on the formula of simplifying and reducing the 18 percent, 8 percent and 1 percent VAT rates applied in goods delivery and services to a single rate.
In the event that this happens, the officials stated that a single VAT can be applied instead of three different rates for retail sales and a single VAT instead of different rates for wholesale sales. Lowering the 18 percent upper limit may also be on the agenda. In some items, VAT will be completely abolished,” he said.
In addition, the authorities; He noted that with the abolition of VAT on basic food and necessities, the prices of some products will also ease. On the subject, AKP MKYK member Burhan Sakallı said, “There is a simplification and reduction in Value Added Tax. This discount will also be reflected on the labels.”
On the other hand, the analysis of the Ministry of Finance continues regarding the products for which VAT will be regulated and abolished. The authorities aim to solve the financing problems of companies by accelerating the process of VAT refunds of sectors, especially exporters.
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