8/25/2008

Turkey seeks new investments with the implementation of incentives

Hurriyet English - The Turkish government expects a surge in investments in the country's poorer regions with the announcement of a new incentives package that could be implemented as early as 2009, Referans business daily reported. The government is planning to support the companies that plan new or additional investments that would create new jobs and contribute to reduce the unemployment rate which runs around 10 percent. The support would come in the form of further reductions in social security premiums after the implemented 5 percent cut, corporate tax reductions, the covering of all training costs, allocations of investment, interest return, exemptions from customs and value added tax (VAT), the report added. Turkey’s sluggish textile sector would be exempt from fulfilling the requirement of creating new jobs. Any textile manufacturer wanting to move their production to the country’s poorer eastern or southeastern provinces would be supported under the new rules. The new incentives system does not require new legislation, instead an amendment to the existing law would be sufficient for the government to introduce the new system, the report said.

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