Turkish government allocates $15.4bn to limit economic fallout due to COVID-19

20 March 2020 17:01 (UTC+04:00)

By Akbar Mammadov

Turkey has unveiled a relief package worth 15.4 billion dollars as part of measures to limit economic fallout due to coronavirus (COVID-19), Anadolu News Agency reported on 18 March.

Addressing the meeting in Ankara on measures to fight coronavirus, Turkish President Recep Tayyip Erdogan proclaimed the relief package covering tax cuts across various sectors and debt payment delays.

“Social security premiums and Value added tax (VAT) deductions have been suspended for six months across various sectors, including retail, malls, iron-steel, automative, logistic and textile”, said Erdogan.

He noted that VAT on domestic airline flights has been cut to 1% from 18% for a period of three months, mentioning that accommodation taxes will also not be applied until November.

“Credit payments of craftspeople and artisans to state lender Halkbank will also be delayed for three months without interest,” Erdogan added.

In addiiton, the Turkish government made a decision to extend financial support to stocks for exporters to maintain capacity utilization rates.

"We will encourage credit packages for citizens under favourable and advantageous conditions," Erdogan said.

Turkey also doubled the credit guarantee fund's limit to 50 billion Turkish liras ($7.70 billion), up from 25 billion liras ($3.35 billion).

President Erdogan said that employers should encourage flexible and remote working models to stop the spread of coronavirus (COVID-19).

The lowest pension amount has also been increased to 1,500 Turkish liras ($231).

Turkey has registered 359 coronavirus cases as death toll hit four on March 20.

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Akbar Mammadov  is AzerNews’ staff journalist, follow him on Twitter: @AkbarMammadov97

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