The new value-added tax bill is to be submitted to the Council of Ministers in 2016 E.C
The new value-added tax bill, which has been in force for more than 20 years, will be submitted to the House of Representatives for approval in the new year. According to the given information from the Ministry of Finance, the subtle of the bill was returned after comments by the Ministry of Justice and with some amendments being made it would recently be presented to the House of Council minister.
As the Finance Minister stated one of the first decrees expected to be approved by the House of People’s Representatives after the recess in the new term of office is the Value Added Tax Decree.
This bill has been prepared by including various business sectors that were not subject to VAT in the past, and some types of businesses that were mentioned as not subject to VAT are also included.
Companies and Business owners respond to the new value-added tax
It should not be forgotten that during the discussion on this bill, some business sectors argued that the value-added tax should not be directed at their sectors finance institutions were the lead of this complaint.
In addition to this companies like banks and insurance companies expressed their complaints against being forced to collect value-added tax in written form, Transport services such as metered taxis, which were previously exempt from VAT, will be included in this bill.
The new decree indicates that the consumption of electricity will also be subject to value-added tax. The draft indicates that any service provided through electronic transactions will be subject to value-added tax. In the discussion forums that were prepared, they argued that it is inappropriate for banks and insurance companies to collect value-added tax under the new bill.
In particular, insurance companies have responded against the provision that they must deduct 15 percent value-added tax when paying damages, or collect 15 percent value-added tax when paying compensation.
Banks will also be forced to collect a 15% value-added tax on commissions they earn by transferring money, letters of credit they pay for exports, income they earn, and so on. The reason why this value-added tax, which has been in operation for more than 20 years, needs to be revised is because of the need to revise the decree in light of the current economic activity, the Ministry of Finance announced.
He explained that especially when value-added tax should be considered, it is important to include those who have been outside this system, so the amendment was made.
This revised bill, which is considered one of the steps taken by the government to increase tax revenue, has been proposed by amending the provisions of VAT collection in the existing bill.