Last minute… President Erdogan: We are reducing VAT from 8% on basic foodstuffs to 1%

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President Recep Tayyip Erdoğan delivered a speech while tuning in live to the Treasury and Finance Ministry’s Inflation Control Program Ceremony.

Wishing the meeting, which he said will be an important turning point in Turkey’s fight against inflation, to be a good omen, President Erdoğan took stock: “We are moving firmly towards the growth of the economy of our country through investment, employment, production, exports and current account surplus.”

Declaring that the world economy is suffering from the extreme increase in the prices of raw materials, in particular energy and food, as well as from an imbalance in the financial markets and from high inflation, and that these fluctuations affect also Turkey, President Erdoğan said: It is necessary to add the additional effects on the Turkish economy, which is mainly of foreign origin, dating back to the monetary attack of 2018.”

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“THE FIGHT AGAINST INFLATION REQUIRES TOTAL STABILITY, TOTAL SACRIFICE”

President Erdoğan continued: “We have fought with all the means at our disposal against the reckless attacks that threaten to destroy our economy. Any intelligent and aware person will agree that the panic caused by the fluctuation of the exchange rate during the last months of last year has nothing to do with the realities of the economy of our country. With the package of measures we announced, we prevented this fluctuation and stabilized the exchange rate again. In 2022, we aim to largely eliminate the effects of high inflation that have emerged in this process. »

Stating that “the fight against inflation requires total determination, total belief, total sacrifice”, President Erdoğan said that as a government they have implemented the measures they promised to take in this regard, and said, “Today here is the good news of one of these milestones. We are together to share with our nation. As part of our program to simplify the VAT system, we are reducing VAT on basic groceries from 8% to 1%. As we know, we already apply a 1% VAT on flour and bread.

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Pointing out that with the new regulation, the news of which he shared, they made a 7% discount on food products on behalf of the state, President Erdoğan pointed out that products with reduced VAT at 1% have a significant weight in basket inflation.

President Erdoğan continued: “These are rice, pasta, meat, fish, milk and dairy products, cheese, eggs, edible oils, fruits, vegetables, nuts , legumes, sugar and sweet products, tea, coffee and water. foods they eat frequently in their daily lives. The reduction in taxes on all these products also means a major gain in the fight against inflation. Tomorrow we publish the Presidential Regulation in the Official Journal, which reduces VAT on food products, which includes all stages of production, wholesale and retail trade, to 1%. I just signed before you. I wish this arrangement will be beneficial to our country, our nation and our sectors in advance.

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“WE EXPECT 7 PERCENT DISCOUNT FROM MONDAY”

Dear entrepreneurs, our reduction of VAT to 1% means a reduction of 7% on food products. On behalf of our state, we are planning a 7% discount on food starting Monday.

We must not forget that we are all in the same boat. Each gain of the Turkish ship is a gain of 84 million, and each injury is our common loss. For the first time in our history, employment exceeded 30 million. Our exports are growing at a record level. We are already receiving the signals of the great activity that is about to begin in tourism. We want everyone to participate in the fight against inflation.

Our relevant ministries will carry out strict inspections on products whose prices have been unreasonably increased, especially foodstuffs, through the anti-inflation teams they will set up. Hopefully, we will overcome inflation together without much need for this method, and we will reintroduce our country to single-digit inflation in 2023, the 100th anniversary of the establishment of our Republic.

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We expect the same sincere support from the business community in the fight against inflation. With these feelings, I hope that our decision to reduce VAT from 8% to 1% will be beneficial.

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