Turkey’s Treasury and Finance Minister Berat Albayrak announced a new economic reform package. It includes significant changes in the tax regime, financial structure, agricultural policies and capital markets. The new economic road map to be laid out stipulates a fairer and more inclusive tax regime, reducing indirect taxes.
The Finance and Treasury Minister has vowed reforms to widen the tax base and to create a more effective tax system. The government’s new tax structure will decrease exemptions and gradually lower corporate tax, while combating the unrecorded economy and taxing high income more fairly. The reduced rate primarily aims to create employment.
In a presentation on a reform package in Istanbul, Albayrak said budget measures taken by the government had so far resulted in savings of 44 billion lira ($7.73 billion) and would reach a total of 76 billion lira under measures this year.
Under the tax reform package, the minister stressed the importance of a taxpayer centered system, stating that through a taxpayer-friendly system, all processes would be optimized. Furthermore, Minister Albayrak announced plans of establishing a kind of economy that prioritizes high-added value, based on exports and technology.
The government is also focusing on a tax reform which the Turkish economy and private sector needs to compete in the international arena, adding that tax system will be simplified to reduce red tape. In particular, this plan will include:
Those tax policies should help generate revenue to finance public services but at the same time should not discourage investments.
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