Turkey slashes VAT on basic foods to 1% from 8% – Erdogan

ANKARA, Feb 12 (Reuters) – Turkey has CUT the value added tax on basic food items to 1% from 8%, President Tayyip Erdogan said on Saturday, as the country fights high inflation.

“As part of simplifying the VAT system, we are reducing VAT from 8% on basic food products to 1%. We already apply it in flour and bread,” Erdogan said.

Consumer prices surged by 48.7% in January, and food and non-alcoholic beverages inflation topped 55%.

(Reporting by Ece Toksabay; Editing by Andrew Heavens)

Photo – People go shopping at a local market in Istanbul, Turkeyt. EPA-EFE/ERDEM SAHIN