VAT to be increased to 18-pct from January; coverage will be expanded to meet targets agreed with IMF

The current Value Added Tax (VAT) rate is to be increased to 18% with effect from 01-01-2024, and to impose the tax on certain goods and services to which the Value Added Tax does not apply.

According to the Cabinet of Ministers, this will be carried out to achieve the tax revenue and primary balance targets as agreed with the International Monetary Fund.

A number of tax base increasing and progressive tax policy proposals have been implemented from June 2022 for revenue-based fiscal stability with the aim of ensuring debt sustainability, and as a result, the government's tax revenue in the first 9 months of 2023 compared to 2022 has been increased by 51%.

However, it has not yet been able to meet the tax collection targets agreed with the International Monetary Fund.

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