Authorities in Turkey continue to take preventive measures against the shrinkage risk of the consumption in the local market.
Here is the summary of today’s Presidential Decree about reduction in some taxes in Turkey;
1- Deadline of reduced title fee (3% instead of 4%) is extended to year end.
2- Deadline of reduced VAT rate on house sales (8% instead of 18%) is extended to year end.
3- VAT rate on the sale of furnitures is reduced to 8% until the year end.
4- VAT rate on the sale of commercial vehicles is reduced to 1% until the year end.
5- Reduced Special Consumption Tax (SCT) on passenger cars (highest reduction is 15% for vehicles that SCT base is <120.000TL & engine is <1.600cm3) until the year end.
6- Special Consumption Tax (SCT) on home appliances (white goods) reduced to 0% until the year end.
These changes are of course very good developments on the consumer side. But still, there will be discussions on the days switching from full taxable days to tax reduced days (or vice versa) from corporates’ perspective. If you have further queries on this issue, please feel free to contact us.