Statements were made regarding the VAT regulation, which was expressed by the Minister of Treasury and Finance Nureddin Nebati. In the statements made by journalist Abdulkadir Selvi, it was stated that the rate would decrease to single digits in some categories and the VAT reduction would be made in a way that would affect the prices.
At the beginning of the issues that we have been discussing for a long time in Turkey, inflation and cost of living is coming. Last year, the depreciation of the TL and the resulting rising inflation caused the cost of living to emerge. Although it is not known how this situation will be reversed, the government did not hesitate to take some steps. One of them came to the fore a while ago. VAT deduction it was a matter of
Minister of Treasury and Finance Nureddin VegetalIn a statement made recently, there will be a regulation on VAT. expressed, for this arrangement “Revolution in VAT“. Today, there has been a remarkable development on this issue. Journalist Abdulkadir Cypressmade some statements about the VAT regulation that the government is working on. Let’s take a look at those explanations together.
“Different VAT rates will be reduced to one”
VAT regulation according to Selvi’s explanations; different VAT rates in the same categories such as food, health and durable goods. intends to remove. Accordingly, all products in the same categories will be subject to VAT at the same rate with the new VAT regulation. According to Abdulkadir Selvi, 18 percent VAT is to lower the price of products will be downloaded. However, it is not clear how much it will be lowered. The explanations on the subject are as follows:
“Minister of Treasury and Finance Nureddin Nebati stated that they are working on VAT reduction and simplification. Different VAT rates such as food, health and durable goods intended to be singled out. But the most important thing is that the 18 percent VAT rate will be lowered, leading to a price reduction. The results of these studies will be important for the markets. But the most important thing is that the citizens, who were hurt by price increases, said that the prices went down. it will feel in your wallet“
Although reducing VAT is very important for consumers, there is another important issue on the subject. How to close the VAT gap Unknown. The state had collected 323.9 billion liras of VAT revenue in 2020 under the influence of COVID-19. The regulation to be made in 2022 may lead to a serious decrease in this income. Well in such a case How will the state close the gap in VAT revenues?? For example, what will happen if fuel prices increase while food prices decrease? We will be able to solve all these unknowns more clearly in the coming periods…