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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