Büyükekşi: “It is necessary to increase profitability of exporters for innovation, Re-De, design and branding that we are trying to make prevalent in production and export of our country.”
Giving the good news that VAT return process will accelerate, Minister of Finance Naci Ağbal told “We will remove complains about VAT. Return of VAT which exporters demand from us is our debt to exporters and we should pay this debt in due time”.
Turkish Exporters Assembly (TIM) hosted Minister of Finance in its April Extended Presidents Committee meeting. Problems and solution offers of export was shared in the meeting which was attended by TIM President Mehmet Büyükekşi, presidents of exporter unions across the country, vice presidents and sectors' council presidents.
Touching upon terrorist attacks in Turkey and around the world at the beginning of his speech, Büyükekşi told they are sharing the grief no matter which country is suffering and stated “We should band together, be of one heart and fight together against terrorist attacks. As exporters, we condemn and curse upon terrorism. Those who are trying to reduce reputation of our country will never attain their goal. Turkey will follow its path with the same ambition with its own brand and rising values; no one can throw us off our track”.
Pointing out the problems experienced by exporters, Büyükekşi emphasized that actualization of their demands will bring cost advantage and increase global competitive power of exporters.
Telling that especially VAT returns are causing grave problem, Büyükekşi told “Coordination problems continue among Ministries in process of VAT return. Additionally, there are problems concerning VAT rate difference such as 1%, 8% and 18% in products of both input and output quality in certain sectors. A single rate that will eliminate this difference should be used. Exporters' receivables of the difference among VAT rates are returned once a year and this situation causes financing problems. Exporters have 10 million TL receivables just because of VAT differences.
KKDF's (Resource Utilization Support Fund) Scope should be Expanded
“A primitive practice like Stamp Tax in Export still continues and the problem in practice brings inspectors and taxpayers face to face. We are pleased with Resource Utilization Support Fund that is abated from raw materials but its scope should be expanded. Additionally, Special Consumption Tax should not be taken from initial filling oil foil that is imported in order to be used in vehicles that will be exported within Inward Processing Authorization Certification. Subject of Real Estate tax in Organized Industrial Zone causes problem especially because of Municipalities' increasing current values excessively.
Profitability increase is essential for Re-De and innovation
Stressing upon that actualization of exporters' demands will also save time, Büyükekşi stated “It is necessary to increase profitability of exporters for innovation, Re-De, design and branding that we are trying to make prevalent in terms of production and export of our country. We desire both to pay more taxes and make more investment. Elimination of these problems is critical for us. As the most dynamic actors of this market, the strength that our Ministry of Finance will give us will be the driving power for us in terms of increasing export as well.
Reel sector knows the way, the state should open exit road
Listening to problems of exporters, Minister of Finance Naci Ağbal told radical transformation in reel economy is one of the areas of reform they established as Government. Minister Ağbal told “If added value increases in production and export, transformation takes place. Reel sector will change mentality and government will support. State should not claim to be smarter; reel sector is the one that knows the way. We should open the ways out for reel sector. We can make transformation of reel sector in economy only in this way”.
Giving the good news that VAT return process will accelerate which is one of the biggest problems of exporters, Minister Naci Ağbal told:
“We will eliminate the complaints about VAT. Return of VAT which exporters demand from us is our debt to exporters and we should pay this debt in due time. We returned 32 billion TL VAT in 2015. This process should be conducted correctly, fast and effectively. Taxpayers should be able to see the process transparently and state should be accountable. Therefore, regulations will be more explicit with a new annunciation. Information, documents and correspondence pertaining to returns will be transferred to electronic environment. Specialty tax offices will be built”.Published on Thursday, August 25, 2016