The Government recently announced a crisis package that involves the reduction in some taxes for a period of three months. Most people are speculating that these reductions may continue for much longer than 3 months.
The reductions include:
- The 1.5 percent title deed fee charged during the sale of second-hand buildings and offices is reduced to 0.5 percent.
- Value Added Tax (VAT) charged during the sale of buildings is reduced from 18 to 8 percent.
- VAT on home and office furniture is reduced from 18 to 8 percent.
- VAT on computers, IT technology and office technology is also reduced to 8 percent.
Small and medium-sized businesses can make use of the same VAT reduction (from 18 to 8 percent) when purchasing certain industrial and work machines.
The Government announced recently the reduction in the amount of Special Consumption Tax (ÖTV) for automobile sales which can make up almost half the cost of a car in some cases. ÖTV tax rates start at 37% and go up to 84%.
The media reported last week that most car retailers orders and incoming shipments as well as stocks in storage were all but sold out since the announcement of the ÖTV reduction.
In turn, this had many people questioning how affected people are in Turkey by the economic crisis.
