6/17/2009

Turkish government to continue tax cut on cars, furniture, white goods

AA – The Turkish government has decided to continue its special consumption tax (SCT) reduction on vehicles of under 1,600 cc. However, the rate of tax cut will be less, said officials from the Ministry of Finance. The government earlier reduced the SCT on vehicles under 1,600 cc to 18 percent from 37 percent, for a period of three months until mid-June. This rate will be 27 percent for passenger cars and three percent for commercial vehicles until September 30, said the officials on Tuesday. The tax break will also continue for computers, furniture and white goods. The government will continue to collect eight percent value added tax (VAT) on computers and furniture from June 16 to September 30. Tax on white goods, which was 6.7 percent but was removed until June 15, will be applied at two percent until September 30. Meanwhile, ministry officials said the government has decided to cancel the VAT cut on sales of houses over 150 square meters.

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