Erdoğan: Turkey cuts value added tax on basic food products from 8 to 1%

Turkey has cut its value-added tax on basic food products from 8 to 1%, President Recep Tayyip Erdoğan announced on Saturday.

"As part of the economic program to simplify the VAT system, we are reducing VAT from 8% on basic food products to 1%," Erdoğan said in televised remarks, adding that VAT on flour and bread was already at 1%.

Erdoğan said he expects the tax cut will bring a 7% decline in prices of items among which he cited rice, meat, produce, milk products and eggs.

Turkish users consume natural gas and electricity below market prices, Finance Minister Nureddin Nebati said in a statement on Saturday as he announced a new economic plan, covering incentives for exporters, investors, and businesses.