Nov 25 2017

Turkey to reform sales taxes to boost investment: paper

Turkey will reform its sale-tax regime by the end of the year to increase investment and economic growth, Habertürk newspaper reported on Saturday.

The measures include the swift redemption of a 10 percent sales tax that firms must currently pay when they make investments and then redeem against future expenses, Habertürk said. The measure will free up between 70 billion liras ($18 billion) and 80 billion liras that companies have paid in taxes, it said.

The government also plans to abolish VAT on purchases of machinery, the newspaper said. Another measure will introduce a “flat rate” tax for small and medium-sized enterprises, similar to a system used in the United Kingdom, it said.