By Yusuf Kanli
TDN- I couldn't believe my ears Tuesday when Prime Minister Recep Tayyip Erdogan announced that his government has decided to cut the corporate tax rate from 33 to 30 percent next year and to slash value-added tax on food, health services and education to 8 percent from the current 18 percent.
This was something we've been waiting to hear ever since the value added tax on health services, education and food expenses was bumped up to 18 percent, as if they were luxury items. Sure, even an 8 percent VAT on such expenses is still high, but taking such a step will be a major boost for those in our society on fixed incomes, people who have been facing great difficulties and compromising on the health, food and education of their children for the sake of surviving in these difficult times.
Could there be any better news than an announcement by the prime minister that in addition to a decrease in the corporate tax rate the government has decided to slash the value-added tax on education, food and health expenses from 18 to 8 percent? Sure, the better news would be a total elimination of VAT on such expenses, and we want to believe that in tandem with the strengthening of the country's economy, the government will soon start considering such a step as well.
Applause is due Prime Minister Erdogan, despite the fact that economists immediately started to criticize the government, saying that what had been done was not a reform by any means.
That’s the difference between our understanding and that of the economic geniuses, two of whom would never share the same opinion.
What was done was a real reform… It’s a far more real reform than much of the legislation enacted over the past few years because for a change, something has been done to improve the quality of life of the people.
It’s just great.