VAT rates reduced

ANKARA (AA) - The decision of the Council of Ministers regarding to decrease value-added tax (VAT) rates in some goods and services was published in the Official Gazette on Wednesday.
     According to the decree, VAT on food, health and education will plunge to 8 percent from 18 percent.
     Under the decree, VAT on several foodstuff including milk powder, egg, jam, grape juice, water, mineral water, semolina, all kinds of bread, grain-cereals, rice and flour will be 8 percent as of Jan. 1st.
     The VAT on educational services provided under the Universities and Academies Law, Special Education Institutions Law, as well as on student transportation services and dormitories for university students will also be reduced to 8 percent.
     Also, medical equipment imported with the permission of the Ministry of Health, will be liable to 8 percent VAT.
     (UK-ULG)
2004-12-29