VAT discounts could help Turkish tourism industry
Turkey's tourism sector could be handed a fillip by finance minister Kemal Unakitan, who has indicated that he is in favour of tax cuts for the industry.
In an interview with business newspaper Referans, Mr Unakitan said that he must consider fiscal discipline, but suggested VAT reductions could be on the way, the Turkish Daily News reports.
The newspaper reports that Mr Unakitan is in favour of VAT reductions on food and for the tourism industry. When comparing the high tourism figure to the rest of the Mediterranean basin he said: "Why should I hamper my entrepreneur during competition?"
He said that adding a VAT discount was the mandate of the cabinet and said: "We need an integrated stance. As the Finance Ministry, our financial policies should be supportive of economic growth not obstructive.
"We can only advise the government on the costs of proposed reductions. It is up to the government to decide."
If Mr Unakitan is successful in his twin aims of economic growth and tax breaks for the tourism industry, the property market could benefit from higher rental yields.
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