Turkey reveals tax incentives for regular contributors

ANKARA

Tax breaks for regular contributors will be introduced next year, Finance Minister Naci Agbal confirmed on Thursday.

Speaking at Anadolu Agency's Editors' Desk in Ankara, Agbal said there would be discounts on income-tax returns or corporate income tax for those who routinely paid their dues.

Agbal said those who had submitted tax declarations in the last 3-5 years and paid on time would receive “a discount for the amount accrued in our taxpayers’ tax declaration”.

“We are still working out what the [discount] rate will be. It could be one percent, two percent or three percent,” he added.

Regarding the 2017 budget, Agbal said it would be one which would propel growth.

"Now, 43 percent of our budget expenditures does not go on interest payments. Only 8.9 percent is spent for interest payments and we will reduce this rate too,” Agbal said, describing Turkey’s budget deficit as only one-third that of many other countries.

"Is there any country like Turkey which contains its budget deficit and constantly reduces its debt-to-GDP rate?” he asked.

Agbal said Turkey still maintained its attractiveness for investors, domestic and foreign, despite what he described as biased and pessimistic opinions shared in the media:

“Despite all external challenges outside, Turkey managed to grow 3.9 percent in the first half of the year. And we will catch an annual growth rate of over three percent by the end of year."

“With the ease of risks in the region Turkey will come to be in a better position regarding foreign trade, capital flows and manufacturing.

“The Turkish economy will grow by 3.2 percent by the end of this year. According to forecasts, it will grow 4.4 percent in 2017, and around five percent in both 2018 and 2019,” he added.