The President Erdoğan reiterated the government’s intention to tackle rising consumer prices. Businesses that fail to follow the latest tax drop on basic food items will face hefty fines.
Turkey has reduced the value-added tax (VAT) on staple foods from 8% to 1% including:
The move intends to ease the effects of inflation. The decision entered into force on 14 February 2022.
The country’s vendors are in favor of the proposal. They called for a full-fledged “attack” against soaring food costs. On Monday, several markets in Istanbul began cutting prices to reflect the change.
Authorities tightened inspections to guarantee that the VAT decrease meets its goal. Trade Minister Mehmet Muş emphasized that enterprises should not “aggrieve” consumers.
According to Treasury and Finance Minister Nureddin Nebati:
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