Turkish Finance Minister Announces Tax Cuts, Lira Falls

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The economy administration of Turkey has accelerated its efforts to boost the economic activity and curb the running inflation in the country through reductions in taxes and massive anti-inflation campaigns with the support of the private sector.

This afternoon, the value of the Turkish lira dropped as the finance minister of the country revealed a comprehensive tax package that involved a series of tax cuts including a reduction in value-added taxes (VAT) and excise duties.

The currency dropped by more than one percent this afternoon as Berat Albayrak, the Treasury and Finance Minister of Turkey, announced the plans to cut tax in some sectors including white good, real estate properties, furniture, home appliances and commercial vehicles.

In his address that was held at the Turkish Tax Inspection Board (TTIB) in Ankara, Minister Albayrak emphasised the recent positive developments that experienced by the Turkish economy.

He stated: “After the recent spike of the Turkish lira, we are now observing a reduction in the inflation. We will see the mitigation of inflation in October figures.”

Albayrak is the son-in-law of Recep Tayyip Erdogan, the president of Turkey. In a tweet, he disclosed: “Today, we are launching a series of VAT and STV reductions in the automotive, white goods, commercial vehicles, furniture and housing sectors.”

He added: “With discounts to be applied in six headings, our aim is to support the total struggle with inflation, balancing and employment in the economy.”

The lira has been able to recover slightly from the lows that were recorded last August, when it had lost nearly 40 percent of its value against the dollar. However, according to the most recent data that were released by the Turkish Statistical Institute, a 24.52 percent inflation rate last September saw the consumers suffer massive price increases.

The figures of the institute show that the prices in Turkey increased by 17.9 percent last August, worsening by 6.3 percent last September.