Turkey unveils new economic package, lowers taxes on basic foods

ANKARA

Turkey's Minister of Treasury and Finance Nureddin Nebati revealed Turkey's new economic package on Feb. 12.

Nebati said Turkey aims to to decrease inflation by increasing production and exports. 

Speaking at the Turkish Economy Model New Steps and Inflation Measures Promotion meeting, Nebati announced new measures aimed at getting households to bring gold holdings into the financial system.

Turkey to lower taxes on basic foods

Turkey’s president also announced a 7 percentage-point reduction in taxes added to basic food supplies as the country faces rampant inflation.

President Recep Tayyip Erdoğan said value-added tax would be lowered to 1% from 8% on food purchases. His decision would be published in the Official Gazette and go into effect Monday.

Erdoğan said that, in addition to the tax discount, the government “expects” food companies to lower their prices by 7%. He said these foods play a significant part in inflation.

“We will not let inflation crush our nation,” Erdoğan said.

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