Explanation of VAT Discount on Basic Needs Products

A new step is taken in the economy in order to relieve both the low-income and the sector. As explained by the AKP’s economic staff, the Value Added Tax (VAT) enacted 37 years ago discount and simplification going.

With the acceleration of the simplification of VAT deducted from basic food and necessities, which has been on the agenda of the Ministry of Treasury and Finance for a while, some in the prices of the products It is also stated that there will be a discount. It is expected that the regulation to be made to simplify the rates in VAT, accelerate the return processes, and abolish this tax on products and services such as food and cleaning products, is expected to come into force shortly.

It is aimed to apply a ‘single rate’ instead of different rates in retail and wholesale sales.

Recently, Finance Minister Nureddin Nebati, “A revolution is coming in VAT” He gave the signals of this change by saying. AKP economic staffs also stated that the 18 percent, 8 percent and 1 percent VAT rates applied in goods delivery and services should be simplified and implemented. to a single rate He stated that he focused on the reduction formula.

In case of this, the authorities stated that a single VAT can be applied instead of three different rates for retail sales, and a single VAT can be applied instead of different rates for wholesale sales, “With the simplification here, some declarations will also be combined. Lowering the 18 percent upper limit may also be on the agenda. VAT on some items completely removal there will be” used the phrases.

In addition, the authorities; He noted that with the abolition of VAT on basic food and necessities, the prices of some products will also ease. Burhan Sakallı, member of AKP MKYK on the subject, “There is a simplification and reduction in Value Added Tax. This discount to tags will also reflect” he said.

on the other hand Which products will be VAT regulated and removed? The analysis of the Ministry of Finance continues. The authorities aim to solve the financing problems of companies by accelerating the process of VAT refunds of sectors, especially exporters.