Good news for Turkey regarding tax cuts has recently been announced in advance of the elections which are to be held on 24th June. Taxes on property purchases have been dramatically cut by 10% and Pro-government NTV broadcaster stated that VAT (value added tax) is to be reduced on property purchases from the current tax of 18% to 8% plus the duty on title deeds (Tapu) is to be reduced from 4% to 3%. These savings are fixed until 31st October 2018.
The decision for the tax cuts was released in a statement last weekend on the 6th May and is a welcomed saving taken by the cabinet ahead of the snap elections in June. Also included in the deal announced by the Finance Ministry is a tax exemption on income for women who go out to work whilst their children attending nurseries, day care centres or crèches. The ministry is actively attempting to support and encourage employment for women with this tax incentive. In a statement from the Finance Ministry they said “We have thus increased the income tax exemption from 304 Turkish Liras [$71.3] to 1,015 liras [$238] on a monthly basis. We aim to support women’s employment in this way”. The tax exemption has been increased from 15% to 50% of the gross monthly minimum wage for each child. This is superb news for working women in Turkey and a positive step in the right direction that women are being encouraged back into the work force after having children.
Not all tax news was received so well with tax increases inevitable on some alcohol. Raki saw a tax hike from 171.2tl to 184.3tl.There was also a rise in gin and vodka which went up from 175.6tl to an increase of 184.4tl. Good news though for any wine, whiskey and liquor drinkers as NTV broadcaster said tax rates on these drinks have been reduced. These increases and decreases of taxes on alcoholic drinks are connected with Turkey’s negotiations with the European Union special consumption taxes which have now been matched.
Turkey is on the brink of change for working women, it has always been when a woman marries and especially after she has had children she would stay at home to be a housewife and mother. However the standard of living is increasing and modern Turks are looking for a better quality of life and we have seen this in the way they now view property. Originally when a young couple married they would reside (usually) at the husbands family home but this is changing and rapidly. Young modern Turks want their own homes and are moving away from living with their families, they want independence, space, freedom of movement and most of all privacy but with this comes the need for two incomes.
According to family structure survey in 2016, 84.9% of the population approved women working with the highest proportion approving in western Turkey on the Aegean coast which included Izmir, Aydin, Denizli and Mugla. In all fairness 71.5% approved in the likes of Gaziantep, Diyarbakir and Mardin. Figures have also confirmed that females who graduated from higher education earned a decent income with an annual wage of 29,238TL. Females who graduated from high school earned 16,124TL per annum and females who had not graduated from high school only earned 8.528TL.
We should applaud the new tax incentives for working women with children, because the knock on effect will hopefully encourage parents to ensure their daughters are well educated and they can earn a decent living as an adult plus, be an independent woman in Turkey.