Turkey reveals tax incentives for regular contributors

ANKARA – Anadolu Agency

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Tax breaks for regular contributors will be introduced in Turkey next year, Finance Minister Naci Ağbal confirmed on Oct. 20.

Speaking to the state-run Anadolu Agency, Ağbal said there would be discounts on income-tax returns or corporate income tax for those who routinely paid their dues.

He added that all who have submitted tax declarations in the last three to five years and paid on time would receive “a discount for the amount accrued in our taxpayers’ tax declaration.”

“We are still working out what the [discount] rate will be. It could be one percent, two percent or three percent,” he said.        

Regarding the 2017 budget, Ağbal said it would be “one that propels growth.”

“Only 8.9 percent is currently spent on interest payments and we will reduce this rate further,” he added, noting that Turkey’s budget deficit is only one-third that of many other countries.

“Is there any country like Turkey that contains its budget deficit and constantly reduces its debt-to-GDP rate?” Ağbal said.    
   
He claimed that Turkey maintained its attractiveness for investors, domestic and foreign, despite what he described as “biased and pessimistic opinions” in the media.

“Despite all external challenges, Turkey managed to grow by 3.9 percent in the first half of the year. We will secure an annual growth rate of over three percent by the end of year,” he said.

“With the ease of risks in the region Turkey will be in a better position regarding foreign trade, capital flows and manufacturing,” Ağbal claimed. 

“The Turkish economy will grow by 3.2 percent by the end of this year. According to forecasts, it will grow 4.4 percent in 2017, and around five percent in both 2018 and 2019,” he also noted.