Intensive control is coming for VAT reduction

While the VAT rate on basic food products was reduced from 8 percent to 1 percent, the Ministry of Commerce decided to tighten its controls to reflect the discount on prices.

In his post on his Twitter account, Minister of Trade Mehmet Muş said, "We are taking the necessary measures immediately to achieve the purpose of the regulation of reducing VAT from 8 percent to 1 percent on food products. We have given our instructions to our trade directorates in 81 provinces. As of Monday, we will intensify our inspections even more. As a result of the inspections we will carry out, the public should have no doubt that we will impose the heaviest sanctions on the markets that do not reflect the VAT reduction on the prices and make our citizens suffer with unfair price increases."

The VAT reduction comes into effect on February 14

The value-added tax (VAT) reduction rate to be applied on basic foodstuffs, announced by President Recep Tayyip Erdoğan, has been determined.

The Presidential Decision Amending the Decision Regarding the Determination of Value Added Tax Rates to be Applied to Goods and Services was published in the Official Gazette.

Accordingly, VAT on basic food products such as pulses, water, tea, sugar, oils and fats, red and white meat, fish, milk, yoghurt, cheese, olives, eggs, vegetables and fruits, canned food, pickles, tomato paste, biscuits, pasta, nuts, baby food/formula has dropped to 1 percent.

The decision will come into effect on Monday, February 14.