Türkiye Says Aims to Rein in Tax Breaks, Target Avoidance in Reform Plan

A woman takes pictures as a ferry sails on the Bosphorus in Istanbul, Türkiye, 29 June 2024. EPA/ERDEM SAHIN
A woman takes pictures as a ferry sails on the Bosphorus in Istanbul, Türkiye, 29 June 2024. EPA/ERDEM SAHIN
TT

Türkiye Says Aims to Rein in Tax Breaks, Target Avoidance in Reform Plan

A woman takes pictures as a ferry sails on the Bosphorus in Istanbul, Türkiye, 29 June 2024. EPA/ERDEM SAHIN
A woman takes pictures as a ferry sails on the Bosphorus in Istanbul, Türkiye, 29 June 2024. EPA/ERDEM SAHIN

A drive by Türkiye 's government to modernize the country's tax system will seek to boost revenue by tackling tax avoidance and scrapping incentives that are no longer needed rather than raising the overall burden, the finance minister said on Monday.

Mehmet Simsek said, however, that preliminary draft proposals being discussed within the government envisioned a minimum 15% corporate tax on multinational companies, confirming a report last month by state-owned Anadolu Agency.

According to Reuters, he did not give further details about the proposal. At present, multinational companies face varying levies depending on numerous factors.

Speaking to local broadcaster BloombergHT, Simsek said the government's plans - which would need to be approved by parliament - also included raising the corporate tax on public-private partnerships (PPPs) to 30% from 25% at present.

Simsek, who has spearheaded a year-long policy-tightening program to tackle soaring inflation, said in Monday's interview that the tax plan being discussed by government officials was in the early stages and could be subject to changes before being presented to parliament.

He said there were no plans to introduce a transaction tax on the purchase and sale of stocks, but the government could propose taxes on stock market gains sometime in the future.

Earlier this month, an economy official said Türkiye had almost finalized work on imposing a transaction tax on the purchase and sale of stocks and crypto assets.
The plans are part of broader efforts to boost government savings, fiscal discipline and price stability after years of turmoil that fueled soaring inflation.

As part of the tightening program, the central bank has aggressively hiked interest rates to 50% from 8.5% since June last year. Annual inflation hit 75% in May but was expected to have dipped in June.



Saudi Arabia Issues 86 Industrial Licenses in April Worth $587 Million

A part of Ras Al Khair Industrial City, which is considered the main cornerstone of the mining industry in the Kingdom (SPA)
A part of Ras Al Khair Industrial City, which is considered the main cornerstone of the mining industry in the Kingdom (SPA)
TT

Saudi Arabia Issues 86 Industrial Licenses in April Worth $587 Million

A part of Ras Al Khair Industrial City, which is considered the main cornerstone of the mining industry in the Kingdom (SPA)
A part of Ras Al Khair Industrial City, which is considered the main cornerstone of the mining industry in the Kingdom (SPA)

Saudi Arabia's Ministry of Industry and Mineral Resources issued 86 new industrial licenses in April, totaling investments of SAR2.2 billion (USD587 million). This brings the year-to-date total to 410 licenses.

According to a report from the ministry’s National Center for Industrial and Mining Information released on Sunday, 67 factories began production in April, investing SAR1.5 billion (USD400 million).

Food production led with 12 new factories, followed by chemicals with 11, and rubber/plastics with 10.

The report noted that 92.5% of new factories were domestic, with joint ventures at 5.9% and foreign investments at 1.49%.

As of April 2024, Saudi Arabia had 11,800 operational or under-construction factories, with investments totaling SAR1.4 trillion (USD373 billion), up from about 10,800 in April 2023.

Small-scale facilities received 80.2% of new licenses, followed by medium-scale at 13.9%. Domestic factories accounted for 100% of the licenses by investment type.

The new licenses were distributed across 10 regions, led by Riyadh with 36 factories, Makkah with 22, and the Eastern Region with 17. Medina had three factories, while Qassim and Hail had two each. Najran, Asir, Al Jouf, and Tabuk each had on.

The ministry’s updates provide insights into Saudi Arabia’s industrial activity, highlighting changes in new investments and factory openings on a monthly basis.