Turkish gov’t continues to support the bosses with incentives and tax reductions.128 companies will generate billions of liras in revenue through the ‘tax, duty and fee exemption’ documents published in the Official Gazette.
In 9 October's Official Gazette, "tax, duty and fee exemption" documents were published for 128 companies, including Kalyon and BMC which are AKP-backed companies.
The published documents show that large tax reductions will be provided to the bosses of the 128 companies.
$250 million subject to tax exemption
While the income of the bosses who will benefit from the tax reduction "opportunity" in the Official Gazette is listed in three different currencies, the value of transactions to be made with only dollars corresponds to over $250 million.
AKP-backed construction company Kalyon's billion dollar “income” is also subject to tax reduction
The largest leg of the projected service revenues of the works in the same list is in Turkish liras, which worth billions. Apart from the other companies, only the financial size of the AKP-backed construction company Kalyon's transaction, which will be subject to tax exemption, corresponds to 9.5 billion liras.
Only for 128 companies?
The bosses, who have benefitted from major tax cuts and incentives provided by the AKP government for many years, are not limited to the list published in today's Official Gazette.
The AKP government is the biggest supporter of the bosses considering that it provided extensive tax cuts and incentives for the bosses before and during the coronavirus pandemic.
soL news previously reported some of the incentive arrangements provided by the government in favour of the bosses:
- According to the November 2018 investment incentive certificate list, automobile company Oyak Renault was given an incentive certificate with an investment amount of 3.7 billion liras. Within the scope of the incentive, 80 percent tax reduction, customs tax exemption, interest support and VAT exemption will be provided.
- In April 2018, President Recep Tayyip Erdoğan announced that 23 projects were selected for "super incentives". Supports for 9 of these projects have been announced. The support given to the projects with a total investment of around 18.5 billion liras captures or even exceeds this amount. The defense investments of one of the AKP’s favourite bosses, Ethem Sancak, which are among 9 projects with two investments, are reinforced with interest contribution payments.
- Among 1200 companies, the energy sector with 57 incentive certificates tops the list of July 'Investment Incentive Certificates' which was published in the Official Gazette. Listed companies were exempted from certain tax items, such as Koç Holding and Medipol, as two of the biggest capital groups in Turkey.
- One of the “super incentives” done by AKP to the big companies was Sütaş, which is active in Turkey’s food industry. Within the scope of the super incentive given to Sütaş, VAT exemption, customs duty exemption, VAT refund, investment location allocation and infrastructure support are also included. Known for its anti-unionization, Sütaş will invest in cattle in Bingöl with the support of AKP. It should be noted that, Sütaş’s head, Muharrem Yılmaz is one of the former chairmen of the Turkish Industry and Business Association (TÜSİAD), the top capitalist organization of the country.
- Incentives were introduced for 5 investments worth 14 billion liras. Among the companies benefiting from the incentives are Kalyon, known for its proximity to the AKP government, Baykar Makina (the UCAV company of Erdoğan's son-in-law), TUSAŞ and Asil Çelik, which was privatized in 2002.
- Tax and fee exemptions were introduced to 11 tourism companies in November. A tax and fee reduction of 200 million dollars was provided to Kilit Global and 2.5 billion dollars to Turkish Airlines.