Turkey’s annual consumer price index (CPI) jumped more than expected to hit a two-decade high of 54.4% in February.
The country will also ease the financing burden on the construction sector by reducing the VAT rate on land and plots to 8%, Erdogan said.
Turkish President Recep Tayyip Erdogan recently announced a reduction in Value Added Tax (VAT) on several products, including hygiene items and medical equipment, to counter inflation. “We have decided to reduce VAT on products such as detergents, soap, toilet paper, towels and baby diapers from 18% to 8%,” he said in a televised address.
Last month, the government reduced the commodity tax from 8% to 1% and subsidized a significant share of electricity bills. He also announced a reduction in the tax on electricity used for residential and agricultural irrigation purposes to 8% from 18%, according to Turkish media.
Fibre2Fashion (DS) News Desk