Turkey: Faced with record inflation, President Erdogan lowers VAT on certain products

From this Sunday, February 13, in Turkey, the VAT on basic food products will drop to 1% in an attempt to stem the rise in prices.

Gent SHKULLAKU AFP/File

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The Turkish president announced, Saturday, February 12, a reduction in VAT from 8% to 1% on basic foodstuffs.

The measure aims to appease the discontent of a large part of the Turks as the country has faced record inflation since Recep Tayyip Erdogan's party, the AKP, came to power in 2002.

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With our correspondent in Istanbul,

Pasta, rice, water, meat and fish, fruit and vegetables, eggs and dairy products, oil and sugar… In Turkey, the VAT on these staple foods will now be the same as that on bread: 1%.

The measure comes into force on February 13, and Recep Tayyip Erdogan told distributors that he expected price cuts on Monday, announcing reinforced controls in stores.

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The objective is to curb the rise in consumer prices, estimated at nearly 49% in January over one year.

This is at least the official rate, disputed by the opposition and economists.

The president, whose approval rating plummets as prices rise, has promised a return to single-digit inflation in 2023, the year of legislative and presidential elections.

►Also read: Why Turkey will not come out of its inflation anytime soon

Critics of the Head of State, however, believe that it is his economic and monetary policy that explains this

.

The government has also promised measures to reduce electricity bills.

Tariffs for individuals and businesses jumped 125% on January 1, prompting protests across the country in recent days.

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• Turkey

• Recep Tayyip Erdogan

• consumption

• Economy

• Food