Turkey slashes taxes for hoteliers, small tradesmen on eve of religious holiday
Turkey’s government cut taxes on a range of services, from hotel accommodation to shoe repair, in a decision on the eve of a religious holiday.
The tax rates will be reduced to 1 percent until the end of the year, Treasury and Finance Minister Berat Albayrak said in comments on Twitter on Thursday. Most of the charges previously stood at 8 percent. The government also halved taxes on commercial rents to 10 percent, he said.
The Turkish government is seeking to boost economic growth and bolster its support among the public after the COVID-19 pandemic reversed a recovery from a currency crisis in 2018. State-run banks have also approved tens of billions of dollars in cheap loans and restructured existing borrowing to help consumers and businesses.
The new tax rates will also apply to services including air travel, home repairs, dry cleaning, sewing, hairdressing and beauty treatment, as well as for weddings and cultural services, according to the decision published in the Official Gazette and cited by state-run Anadolu news agency.