Government will announce incentives

Bloomberg

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The decision was taken at a meeting of ministers chaired by Deputy Prime Minister Ali Babacan on Monday, the Treasury in Ankara said in an e-mailed statement Tuesday.

Turkey has cut taxes on some goods and offered companies incentives to keep their staff as it grapples with the first recession since a banking crisis in 2001. The economy contracted 6.2 percent in the fourth quarter and unemployment surged to a record 16.1 percent in February.

Incentives including sales tax breaks will be available throughout the country, Milliyet newspaper reported yesterday, citing decisions taken at the meeting. The incentives will target specific industries and will increase depending on the size of the investment and its location, Milliyet said.

There may be additional tax breaks and assistance with social security payments for companies investing in the poorer east and southeast of the country, it said.

Turkey will also take measures to boost employment, the Treasury said without providing more details.