Turkish exporters want VAT rebates

ISTANBUL - Anatolia News Agency

TUSKON’s Meral (R) is seen giving a plaque to Finance Minister Mehmet Şimşek in this file photo. The economy ministers are is aware of exporters’ problems, Meral says. AA photo

Turkish exporters have been unable to receive their value added tax (VAT) rebates from the state for months due to intentional bureaucratic delays, according to the head of the Confederation of Businessmen and Industrialists of Turkey (TUSKON).

TUSKON Chairman Rızanur Meral, who recently visited South Africa and Mozambique for trade talks, said in a press release that many companies were waiting for the millions of Turkish Liras of payments for each, adding that they had already explained the problem to Deputy Prime Minister Ali Babacan.
The government normally grants the rebates for exports in a bid to support sales to foreign countries.

TUSKON is a business group focused on foreign trade that is generally known for warm relations with the government.

“The VAT problem is a lingering one,” Meral said. “Exporters especially cannot receive the VAT [rebates];” he said, calling this a financial burden. “The government should be more practical in terms of promoting exports. The manufacturers are also finding it harder to receive the VAT. These issues should be loosened. Highway contractors are also facing serious problems since they are not getting their allowance payment. We think the bureaucracy is being intentionally slow to delay the VAT rebates or to let the state use the finances,” he said.

Economy-related ministers are also aware of the problem, Meral said. “But suppose that they think that the late rebates are a benefit.”

Commenting on a recent government mandate on a possible military move on Syria, Meral said all political decisions had a side effect.

“We believe that authorities are making an effect analysis while making such a decision because Turkey does not achieve benefits that easily. Replacing already-won markets has a high cost. Thus, acting calmly and prudently as possible is important. However, Turkey should not restrain from using power when needed,” he said.