Turkish President Tayyip Erdoğan on Monday announced cuts to value added tax on several products, including detergent, baby diapers and medical products, in bid to counter the effects of soaring inflation.
The value added tax (VAT) of products such as napkins, soap, toilet paper and napkins will be reduced from 18 percent to 8 percent, TRT network cited the president as saying during a cabinet meeting.
Turkish citizens are reeling from the effects of soaring inflation, which surged to 54.4 percent, a two-decade high, after the central bank cut interest rates to 14 percent late last year on the orders of Erdoğan, and the lira slid to successive record lows against the dollar. The currency lost 44 percent of its value in 2021.
Tax rates for all food services, including restaurants and hotels were food is served, will be set at 8 percent down from 18 percent, Erdoğan said on Monday, while the tax imposed on the profit of automobile sales will be increased from 1 percent to 18 percent.
Erdoğan’s government last month reduced value-added tax on basic foodstuffs to 1 percent from the previous 8 percent in a bid to ease the burden on citizens against the skyrocketing cost of living amid high inflation.