TİM Chairman Büyükeksi, Commented on the Draft VAT Law

TİM Chairman Büyükeksi, commented on the draft law sent to the National Assembly which includes new applications and revisions on value added taxation (VAT) policy.

Referring to the Minister of Finance Naci Ağbal; TİM Chairman Büyükekşi told;

“The VAT law came into force in 1985 and has never changed considerably since then. On the other hand, our GDP grew 10 times and our exports grew 20 times of their value back in 1985. We presented our perspective about a necessary revision for the VAT law to the Government via the Minister of Finance, Mr. Ağbal last year. The response from the Government was positive and that positive response lead us to todays reform process on the VAT law. As Turkish Exporters Assembly, we prepared a report including our profound suggestions about the revision on the law and presented the report to our Minister of Finance at last year's Extended Board Meeting. A considerable amount of our suggestions are included in the reform package. We are glad that the long story about the VAT reform is now in progress.”

Büyükekşi further added that “VAT policy is the main area that the companies' are having trouble. With this reform, many obstacles will finally be solved. Especially the VAT receivables from commercial operations is a big issue. While the firms are looking forward to create new resources for new investments and production, their receivables from VAT are piling up at the state. In some cases the amount piled up as VAT receivable has become more than the resource for new investment that the firm is looking for. Therefore a solution on the VAT law was urgently needed. We always announced that we are the main supporter of this reform in every platform. As TİM, we sincerely thank the Minister of Finance, Naci Ağbal, on behalf of Turkish exporters for taking our suggestions into account and responding to our demands in the VAT reform package.”