Turkish government vows to lure more foreign investment

Turkish government vows to lure more foreign investment

Turkish government vows to lure more foreign investment

AFP photo

Prime Minister Binali Yıldırım announced the details of a planned economic package to lure more foreign capital and improve Turkey’s investment climate in a speech on July 4. 

“We are talking about a comprehensive economic package which touches each part of society and eases life for investors,” he said, noting that the package being prepared includes radical reforms in a bid to lure more investments. 

“There will be regulations that will decrease the stamp tax and other costs for investors. In contracts, the stamp tax and the notary fee will be charged for only one copy. This is of great importance for potential investors as we will be ceasing to execute a 52-year-old practice which raises costs for investors,” he said.

Yıldırım noted that any foreign company would be exempted from corporate taxes if it sets up its regional management hub in Turkey, adding that the regional hub staff’s wages would also be exempted from taxes if transferred from abroad. 

“We also want to encourage Turkish citizens living abroad to bring their assets back to the country under the sole condition that this cash will not be illicit money,” said Yıldırım.  

Yıldırım noted that the establishment or the closing of businesses would also be facilitated. 

“We will also renew the economic incentive system by making some incentives permanent. In addition to region-based incentives, we will also launch new incentives based on projects,” he noted. 

Yıldırım said the government would strengthen the financial structure of the Development Bank so as to enable it to offer loans to investors easier. 

“We will do the same with the Exim Bank in its loan offers to exporters,” he noted. 

“Our aim is to ease the access to financing, whether tradesmen, industrialists or others,” added Yıldırım. 

He also mentioned another draft bill which stipulated jail sentences to people who did not pay their checks. 
“If they do not pay their checks once again, we will enact some measures to limit their freedom of movement,” he added. 

Meanwhile, Turkey will do “whatever it takes,” including offering specialized incentives and a 20-year tax holiday, to make it possible for strategically crucial investments to be realized in a number of sectors, Economy Minister Nihat Zeybekci earlier said in an interview in June.

“We will offer whatever it takes to create global giants, to secure our material and energy future and to encourage several strategic investments in key areas,” he said.