Temporary Tax Reductions in Erdoğan’s Crisis Package

At a local election rally in Çankırı, central Anatolia, Prime Minister Recep Tayyip Erdoğan announced a new package to combat effects of the economic crisis.

The package includes tax reductions which will be valid for three months:

• The 1.5 percent title deed fee charged during the sale of second-hand buildings and offices is reduced to 0.5 percent.
• Value Added Tax (VAT) charged during the sale of buildings is reduced from 18 to 8 percent.
• VAT on home and office furniture is reduced from 18 to 8 percent.
• VAT on computers, IT technology and office technology is also reduced to 8 percent.
• Small and medium-sized businesses can make use of the same VAT reduction (from 18 to 8 percent) when purchasing certain industrial and work machines. (TK/AG)