Within the yr since Turkey confirmed its first official case of COVID-19, the federal government’s reduction program has turn out to be a lifeline for all sectors of the nationwide economic system, from households to companies.
Because the pandemic started to unfold past China to turn out to be a worldwide risk, its impression on the economic system turned a scorching matter in Turkey, significantly in March 2020.
That month, the federal government introduced a reduction program to assist companies address the financial fallout from the virus, together with debt deferral, tax cuts for companies, and assist for low-income households, pensioners and the aged.
Whereas a few of these measures remained in place with out interruption, some have been suspended and subsequently reintroduced, with the variety of circumstances growing once more firstly of winter.
The federal government has additionally thrown a lifeline to the lodging and transport sectors, which have been hit hardest by the virus, equivalent to lowering the worth added tax (VAT) for airways to 1%. and the deferral of taxes on lodging services.
As of final December, tax funds from taxpayers who’ve quickly suspended their actions as a consequence of pandemic measures have been postponed.
The nation launched steep cuts in VAT for companies and a discount in withholding tax for merchants on the finish of July 2020, a measure that’s anticipated to be in impact till Could 31.
VAT on lodging and catering companies and cultural actions equivalent to cinema, theater and museum entrance charges has been lowered from 8% to 1% and has been lowered within the transport of passengers, marriage ceremony organizations, residential upkeep and restore, dry cleansing and service provider companies. like adaptation from 18% to eight%.
VAT on schooling companies has additionally been lowered to 1%, legitimate till June 30.
Aid on loans, taxes, wages
Taxes, premium money owed, administrative fines and money receivables have been restructured in installments.
Lenders have additionally postponed principal and curiosity repayments to firms dealing with money stream disruptions and supplied extra monetary assist.
State lenders have introduced a low-interest credit score bundle of as much as 10,000 Turkish Liras ($ 1,477) for households with month-to-month incomes under 5,000 Turkish Liras ($ 740).
The nation has launched a list finance assist program to assist Turkish exporters whose shares have collected as a consequence of low demand and canceled orders.
In one other measure to strengthen liquidity, the federal government doubled the restrict of the Credit score Assure Fund.
The nation’s banking watchdog has supplied flexibility for late mortgage repayments by companies.
The federal government additionally introduced that it could pay 60% of the salaries of the workers of firms pressured to shut their doorways underneath the short-term employment allowance program.
To assist defend retirees from the unfavorable results of the outbreak, the minimal pension has been raised to 1,500 Turkish Lira ($ 221), with bonus funds being postponed to earlier dates.
The federal government has additionally began offering 4.4 million households in want with 1,000 Turkish liras ($ 148).
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