“Reform packages must be rapidly implemented”
TİM delegation visited Prime Minister Binali Yıldırım at Çankaya Palace after President Erdoğan. Mentioning that the economy will continue to grow much more strongly with the unity achieved by the nation after July 15, Büyükekşi said, “Our exports for the week after the treacherous attempt increased 16% compared to the week before. Just as our exports, we did not experience any disruptions in other areas of our economy. The precautions taken by our Government and Central Bank, and the reform packages that are announced have an important effect on this.”
Assessing that many decision that were suggested by TİM were taken in the last meeting of the Coordination Council for the Improvement of Investment Climate, Büyükekşi continued his remarks:
“We give great importance to regulations coming into effect like lowering the cost of the tax stamp, introduction of tax exemptions to bring Turkey to the center of international companies, employment of qualified foreign personnel that are among the recommendations of TİM. Moreover, we expect that the recently announced new incentive system will increase investment and exports in our country, and carry growth to higher levels. The fact that our request of issuing green passports to our exporters has been accepted as of yesterday, will pave the way for our exporters. In the coming period, we request that planned action plans and reform packages are rapidly implemented as well. This way, we expect that both investments and exports in our country will reach to our targets.”
Prime Minister Yıldırım continued:
“During the investment period, the tax discount rate on all profits will go up to 80 percent for all regions.”
Pointing out that there has been a transition from a ready-made incentive system to a custom incentive system, Prime Minister Yıldırım said, “We will approach incentives whichever are most appropriate. We are removing all funds in forestry products. We will reduce transportation costs.”
Headlines from Prime Minister Yıldırım's speech:
“Every product we export, is an indicator of Turkey's strength. There ins one thing we must do: We must go to new markets, especially Asia.
Secondly, we have provided all kinds of incentives. Your responsibility now, is to increase export value per cluster.”
We will build the factory of those invest in Southeast
In high technology, you will get the highest incentive no matter what region you invest in, invest in Southeast. If you make it there, we are your partner. Invest in Iğdır, Hakkari; we will build the factory.
There are good days ahead of us, our tomorrow will be better than our today. July 15 is the milestone that gives us ambition and powerful desire again. July 15 is the beginning of days that Turkey is moving to new horizons.
Prime Minister Binali Yıldırım gave information on the “New Investment and Export Incentive Package”, and said that during the investment period, the tax discount rate on all profits will go up to 80 percent for all regions.
Referring to the regulations in this incentive package, Yıldırım said,
- within the context of “The effectiveness of the current incentive system will be improved.” article,
- “During the investment period, the tax discount rate on all profits will go up to 80 percent for all regions.”
- “Tax discount rate will be protected against inflation with revaluation.” regulations were also included.
- He made the remarks, “There will be a permanent application on advantageous incentives. We make the promise that these incentives, what they will entail, how they will be applied, in other words, that they will be written in law, and will no evaporate in application. Everything written in law will be implemented in full. If you go for mid and high technology, incentive amount increases.”
Pointing out that as part of the package, highest incentives will be received no matter which region the investment is made in, Yıldırım said;
“My advice to you, do not make it in the first or second regions. We have problems in Southeast as well. Make this investment there. If you make it there, we are your partner. We provide purchase guarantee, and we compensate fixed costs of your investment,”
Conveying that product marketing will also be supported in these types of investments, Yıldırım said;
“That is according to the type of the product, meaning it may not be all products. These are areas that the country have a need for or we have a high chance of competition, and we will sit together and determine these.”
Stating that all funds on forestry products will be removed, Yıldırım listed incentives within the package as follows:
- We are increasing existing incentives.
- We will bring freight support. Meaning, we will reduce transportation costs.
- We will support those who wish to undertake technological transformations. We will provide additional incentives to those who wish to do so in exports.
- Exemption from customs duty, VAT exception, VAT refunds, deductions and exemptions on corporate tax.
- Employer insurance premium support, investment location allocation, interest, grant, withholding support, energy support, support for the employment of qualified personnel, capital contribution.
Yıldırım concluded his remarks with, “We are thinking about what we should add on top of what already exists. We need to work more, we will build the future of our country together.”