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Turkey: After the elections, Erdogan increases the VAT again

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ΤουρκΙα: Αφο&pi ;ερασαν οι εκλογες ο Ερντογαν αυξα&nu ;ει ξανà τον ΦΠΑ

Turkey has raised the value-added tax on goods and services to 20% from 18%, while also raising taxes collected on bank consumer loans, the country's Official Gazette reported.< /strong>

In the Gazette announcement effective immediately, President Tayyip Erdogan Erdogansigned several resolutions, including one that increases the Bank Insurance and Transaction Tax (BSMV) applied to consumer loans to 15% from 10% previously.

< p>VAT, which occupies an important place in the state budget, constitutes about a third of the budget revenue. The largest budget item, after VAT, is the two most important sources of revenue, the excise tax and the income tax.

A bag of laws submitted to Turkey's Grand National Assembly this week included raising corporate tax from 20% to 25% and doubling the car tax by 2023.

These increases show how the Turkish president opportunistically manipulates the economy like an accordion, playing as he pleases.

It is characteristic that before the election, Erdogan declared that “as long as this brother of yours is president interest rates will not increase” and the first move after the election was to increase interest rates.

VAT inneeds items such as detergent, soap, toilet paper, baby diapers and in the food and beverage sector had fallen from 18% to 8% in March . With the decision published today, the VAT on these products will henceforth be 10%.

Buying a mobile phone from abroad will be more expensive

Due to the high taxes on mobile phones in Turkey, many people preferred to bring and declare a phone from abroad or go to countries like Georgia where one can enter without a passport and declare IMEI after buying a phone.

Phone charges for mobiles coming from abroad, from £6,019, rose 228% to £20,000, or $756.75.

Stocks and the earthquake

Separately, Turkey also decided that dividend payments of own shares bought by companies listed on Borsa Istanbul will be exempt from withholding tax.

The moves came after the introduction of a draft law in parliament earlier this week seeking to raise corporate tax to 25% from 20% for earthquake-related funding needs.

The earthquakesof February in southern Turkey killed more than 50,000 people and left millions homeless. Business groups, economists and the government have said that the reconstruction efforts could cost Turkey more than $100 billion. which banks, businessmen, involved and in general all the people of Erdogan, supposedly donated, on the evening of February 15th for the earthquake victims.

The economist Dr. Duran Bulbul, in an interview with the opposition Cumhuriyet, says that “we said that an earthquake fund should be created for the money collected. It is understood that the money collected from the MTV decision was not used for the earthquake.” And then he wonders: “maybe the money collected for the earthquake was used to finance the elections?”.

source: Capital.gr

Source: 24h.com.cy

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