Turkiye Hikes Taxes on Goods, Services
The value-added tax on goods and services increased to 20 percent from 18 percent, said the national journal of Turkiye. The tax on bank consumer loans surged to 15 percent from 10 percent, it added.
Turkiye's annual inflation stood at 38.21 percent in June, the lowest in 18 months. Economists said the downtrend in inflation appears to have come to an end as markets wait to see signs of a gradual return to more conventional policies.
President Recep Tayyip Erdogan, who has declared himself the enemy of high-interest rates, has adopted his new economic team's approach to addressing the country's current economic woes.
Among others, the government also introduced a 50-percent increase for visas, notaries, and passports, according to the report.
And 20,000 Turkish liras (766 US dollars) in tax will be imposed on a mobile phone purchased from abroad, it added.
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