ECONOMY

Turkey to discuss motor vehicle tax hike: Deputy PM

TURKEY TO DISCUSS MOTOR VEHICLE TAX HIKE: DEPUTY PM

Turkey would discuss a plan to increase tax on motor vehicles in weekly Cabinet meeting on Monday, Turkey's Deputy Prime Minister Mehmet Şimşek said on Monday.

Şimşek's remarks came after Turkish President Recep Tayyip Erdoğan said on Sunday the proposal would be discussed by the Cabinet.

On Wednesday, the government announced new tax measures, which aim to add 28 billion Turkish liras ($8 billion) to the revenue budget in 2018 last Wednesday, in line with the medium-term program (MTP).

The government targets an annual growth rate of 5.5 percent for 2018-2020. The measures foresee tax hike on passenger cars by 40 percent as of 2018.

Two-third of the new tax hike will be allocated for the country's defense funding as geopolitical risks increase, Şimşek said in a live interview with the private television channel Fox TV.

"Our defense industry fund normally enjoys budget surplus every year. The fund will have a deficit of 8-9 billion Turkish liras due to purchasing of new weapon systems," the deputy prime minister added.

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