Turkish gov’t bids to deter luxury consumption

Neşe Karanfil ANKARA

Turkey may create new taxes to deter luxury consumption and raise domestic savings, representatives from the Finance Ministry have said.

The ministry is preparing new taxes on luxurious and/or import-oriented goods to increase domestic savings in the forthcoming period in line with the government’s target for the new Medium Term Economic Program.

New taxes may be applicable for a wide range group of goods, from luxurious furs and cars to imported caviar, according to the ministry figures.

Turkey’s savings ratio is expected to reach 14.9 percent of the country’s GDP by the end of this year. The government aims to increase this figure to 15.2-17.1 percent between 2015 and 2017.