Turkish gov’t cuts property taxes ahead of snap election

Turkish gov’t cuts property taxes ahead of snap election

ANKARA
Turkish gov’t cuts property taxes ahead of snap election

The government has slashed property taxes ahead of the snap June 24 elections, with a new legal package also including a higher income tax exemption for female workers whose children go to a day care center and changes to the special consumption tax for a group of alcoholic beverages.

According to a cabinet decision released over the weekend of May 5-6, the value-added tax (VAT) for properties has been decreased from 18 percent to 8 percent until the end of October.

Title deed fees were also slashed from 4 percent to 3 percent according to the cabinet decision, which was later elaborated by the Finance Ministry.

The income tax exemption for women workers with children going to day care centers was also increased, in what the ministry said was part of an attempt to support women’s employment.

The tax exemption has been raised to 50 percent of the gross monthly minimum wage for each child, up from 15 percent.

“We have thus increased the income tax exemption from 304 Turkish Liras [$71.3] to 1,015 liras [$238] on a monthly basis. We aim to support women’s employment in this way,” read the Finance Ministry statement.

Alcohol taxes

In accordance with Turkey’s accession negotiations with the European Union, special consumption taxes for alcoholic beverages have been equaled.

While the taxes imposed on rakı, vodka and gin have been increased, the tax rates for whiskey, liquor and wine have been decreased.

Before the latest hikes, tax already constituted nearly two-thirds of the 99.5-lira ($23.4) price of a standard 70 centiliter bottle of rakı at Turkish markets.

tax, snap elections, property