Dünya - A draft law on the establishment of the Turkish Wealth Fund, which is expected to contribute to Turkey’s growth by an additional 1.5 percent per year, and a new investment incentives package covering project-based support and exemptions has been sent to Parliament.
The initial capital of the fund, projected to be TRY 50 million, will be allocated by the Privatization Administration. The total asset value of the fund is expected to reach TRY 200 billion in the coming years.
The fund will be sourced from revenues of institutions and assets transferred by the Privatization High Council, as well as through excess revenues of other public institutions. The fund is expected to create its own sources in time and to provide financial support to mega-projects in Turkey.
In addition, the law draft embraces a new project-based investment incentives package, which provides financial support with lower interest rates for projects determined by the Economic Coordination Council. Some of the project-based support and exemptions are:
· Free land allocation for 49 years
· Free transfer of land for projects completed in due time and guarantee a
certain amount of employment for five years
· Project-specific infrastructure
· State guarantees for produced goods
· Disposal of interest for credit extended for fixed investments
· Customs duty exemption
· Wage support for qualified employees for five years
· State partnership for up to 49 percent provided that an IPO will be conducted
· Corporate tax exemption of up to 100 percent