From the Hurriyet Daily News - 16 June 2009
Turkey has set low sales taxes for white goods, vehicles and other products for 3-1/2 months to boost weak domestic demand, the Finance Ministry said on Tuesday.
The government has announced a series of measures aimed at stimulating the economy, which is expected to slip deep into recession this year.
The ministry said the sales tax on passenger vehicles was set at 27 percent until the end of September compared with the normal 37 percent tax. The tax had been set even lower at 18 percent for the last three months.
“For the last three months cuts have been imposed on the special consumption tax and value-added tax for some products in order to boost domestic demand,” the ministry said in a statement.
“A cabinet of ministers' decision was taken to continue partially the tax cuts until the end of September,” it said.
The temporary tax cuts have boosted local consumption, particularly in the key automotive sector.
The special consumption tax on white goods was set at 2 percent, compared with a normal rate of 6.7 percent and a zero rate in the last three months.
The value-added tax on computers and furniture remained at 8 percent, the reduced level at which it has been for the last three months, compared with a normal rate of 18 percent.
A 0.5 lira special consumption tax hike was imposed on tobacco, cigarettes and cigars.
