Firms ask for incentive ease due to Iraqi crisis

Erdinç Çelikkan ANKARA

Local firms asked the government to make some exceptions due to Iraq crisis. REUTERS Photo

Turkish companies have told the government that they might struggle to fulfill their promises regarding tax redemptions for exports due to a decrease in trade created by the recent crisis in Iraq.

The Economy Ministry, in cooperation with the Foreign Ministry and Turkish Union of Chambers and Commodities Exchanges (TOBB), had asked over 1,500 firms to provide information on their business activities in Iraq, as well as the setbacks that resulted from the seizure of the Iraqi city of Mosul by the Islamic State of Iraq and the Levant’s (ISIL).

The companies requested that the government provide extra time in order for them to perform their responsibilities as part of the Inward Processing Regime (IPO) and fee exemption practices that ease the conditions for exporters.The IPO is a system that allows Turkish manufacturers and exporters to obtain raw materials, intermediate unfinished goods that are used in the production of the exported goods, without paying customs duty and being subject to commercial policy measures.

The ministry asked the firms to send documents that substantiate their problems and losses, promising to review their situation.