9/15/2008

Incentives encourage textile producers to relocate to east

Today’s Zaman - An incentive package, long awaited by Turkey's textile industry to help reverse its weakening competitiveness in the international markets resulting from an influx of cheap Chinese goods, has finally been announced. The package promises textile manufacturers numerous benefits if they move their plants to impoverished regions in Anatolia. Minister of Industry and Commerce Zafer Caglayan announced at a press conference in Ankara that investments in eastern and southeastern Anatolia, regions that are in dire need of development, will receive a significant level of support, including exemption from value-added tax (VAT) and customs duties for a certain period, subsidies in loan interest rates and reductions in social security insurance premium payments, corporate taxes and income taxes.