IN TURKEY THE VALUE ADDED TAX RATE WILL BE INCREASED

VAT increase in Turkey

IN TURKEY THE VALUE ADDED TAX RATE WILL BE INCREASED

VAT in Turkey is increasing. In the future, goods and services will be charged at 20 percent instead of 18 percent. The reduced tax rate for basic goods such as groceries, toilet paper, detergent and diapers will be increased from 8 to 10 percent. Erdoğan's government plans to increase corporate income tax from the current 20 to 25 percent. The rate for banks and financial institutions will increase from the current 25 to 30 percent. It is planned to reduce export earnings with a discount of 5 percentage points. The bank insurance and transaction tax that must be paid on consumer credit will be increased from 10 to 15 percent. This increases the burden on the Turkish population. Officially, inflation is 38 percent. 54 percent are food and non-alcoholic beverages. In addition, the key interest rate was increased significantly to 15 percent.