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VAT Rates Increased; Erdogan, Zelenskiy to Meet in Istanbul Later Today

TURKEY
  • Turkey has increased the general VAT rate to 20% from 18% and the rate applied on some other goods to 10% from 8%, according to a decree published in the official gazette. The lump sum fees applied in 2023 were increased by 50% while the Banking and Insurance Transaction Tax was raised to 15% from 10%. Taxes on gambling were also raised.
  • President Erdogan will meet his Ukrainian counterpart Volodymyr Zelenskiy at 1700BST/1900 local time in Istanbul today. According to Hurriyet, Zelenskiy will demand Turkey’s support so that NATO members pledge heavier weapons as well as jetfighters in a bid to push its counteroffensive against Russia. The two leaders will also discuss the ongoing grain initiative. Russia says it will not extend the deal which will expire on July 17 because its conditions have not been met.
  • Citing data from the Trade Ministry, Hurriyet report that Turkey’s foreign trade volume in TRY has increased by 129% in the January-June period to TRY349.5bln.

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