President Recep Tayyip Erdogan has said that as part of the government’s efforts to shield consumers from the rising energy costs, the payments companies will make to their employees to help them cover their natural gas and electricity bills will be exempted from income tax, reports TurkicWorld with the reference to Hurriyet Daily News.
Under the new scheme, which will remain in place until April 2023, payments up to 1,000 Turkish Liras ($54) will be exempt from tax, Erdogan said on Sept. 25, adding that inflation will decline to reasonable levels in February next year.
“We are determined to bring inflation to single digits in the following years,” the president said.
The new scheme will render significant support for working people, Treasury and Finance Minister Nureddin Nebati said, speaking at the Farmers’ Summit in Istanbul on Sept. 26.
The government is taking measures to boost people’s purchasing power without causing a slowing down in the economy, Nebati said.
“The main problem which needs to be addressed is inflation, and we will beat inflation.”
Food constitutes the largest item in the inflation basket, and the government slashed the value-added tax on food in order to reign in food inflation, the minister furthered.
Loans are channeled toward production rather than consumption, Nebati said.
“We are continuing a steady growth which is based on the Türkiye Economy Model that focuses on investment, job creation, production and exports,” he added.
Meanwhile, Saudi Arabia’s Crown Prince Mohammed bin Salman met with Nebati, according to sources at the ministry.
The meeting took place at Al-Salam Palace in Jeddah on Sept. 24 and İbrahim Kalın, the Turkish presidential spokesman, was also present at the meeting.
At the meeting, aspects of bilateral relations between the two countries and ways of developing them in various fields were reviewed, in addition to discussing cooperation on a number of issues of common interest, Saudi state news agency SPA reported.