Turkey lowers taxes on basic foods to fight high inflation
ABC News
Turkey’s president has announced a significant reduction in taxes on basic food supplies as the country faces rampant inflation and numerous protests over eroding living standards
ISTANBUL -- Turkey’s president announced a significant reduction in taxes on basic food supplies Saturday as the country faces rampant inflation and numerous protests over eroding living standards.
President Recep Tayyip Erdogan said the value-added tax would be lowered to 1% from 8% on food purchases. His decision will be published in the Official Gazette and go into effect on Monday.
Erdogan said, in addition to the tax discount, the government “expects” food companies to lower their prices by 7%. He said these foods play a significant part in inflation.
Official data for January showed inflation rose to a staggering 48.69% annually, although independent experts say the true number is much higher, more than 115%.
