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Turkey: Details of VAT reduction in food have been announced

VAT reductions in food will apply to the prices of all legumes such as rice, bulgur, chickpeas, water, tea, sugar, salt, oils and fats, red meat, white meat, fish, milk, yogurt, cheese, olives and products made from them.

President Recep Tayyip Erdogan, in his speech at the “Turkish Economy Model New Steps and Inflation Measures” promotional meeting organized by the Ministry of Treasury and Finance, announced that they had reduced the VAT from 8% on basic food products to 1% within the scope of the “VAT System Simplification Program”.

The President’s Decision on the subject was published in the Official Gazette today.

VAT reductions, excluding products such as fruit juices, cola, caviar, which are subject to Special Consumption Tax with the said regulation; prices of all legumes such as rice, bulgur, chickpeas, water, tea, sugar, salt, oils and fats, red meat, white meat, fish, milk, yoghurt, cheese, olives and products made from them.

In addition, vegetable products such as eggs, potatoes, onions, peppers, tomatoes, cucumbers, fruits, canned goods, pickles, tomato paste, jam, honey, molasses, tahini halva, hazelnut paste, chocolate, Turkish delight, biscuits, crackers, wafers, pastries, cakes, baklava, yufka, maqam, vermicelli, cereal, nuts, walnuts, pistachios, almonds, dried nut products, spices and baby foods are among the products whose VAT rate has been reduced to 1%.

The VAT reduction is expected to be reflected in food prices.

INFLATION LOAD WILL BE REDUCED

With the regulation made within the scope of the VAT simplification efforts, a very important step has also been taken in reducing the burden of food inflation on consumers.

With the regulation, it is aimed to provide ease of application by removing the separate VAT rate application in wholesale delivery of some foodstuffs and separate VAT rates in retail delivery.

Source: NTV / Translated by Irem Yildiz

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