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Turkey further VAT cuts

Inflation hits 62% in March prompts more VAT rate cuts

On 28 March, the Turkey President, Tayyip Erdogan, announced a cut from 18% to 8% for a range of goods including:

  • bathroom supplies such as soap and detergents,
  • napkins and toilet paper
  • baby nappies.
  • restaurant services in premises of 3 stars and above
  • certain agricultural machinery

These changes will come into effect from 1 April 2022. Turkey has already cut VAT on domestic fuel. at the start of this month.

Inflation has hit a new record this month of 61.5%, up from 54% in February.

Many other countries are cutting VAT on electricity and food as global inflation rises due to supply chain problems caused by COVID-19 pandemic disruption.

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