Turkish govt rules out extra tax on auto sales

Turkish government rules out levying an extra tax on auto sales, Industry & Trade Minister Nihat Ergun said on Thursday.

"We do not have such plans for now," Ergun told reporters in Istanbul.

Ergun was asked about his earlier remarks that the government might think about additional tax on automotive in order to help curb current account deficit.

He said the new cabinet had not been formed yet and Economic Coordination Council had not convened and made a decision on new taxes.

"Today, Turkey's automotive industry is about to fail to keep its position as a total exporter. Imports are on the rise. The industry had a foreign trade surplus of 5 billion USD. But it fell to 373 million USD in 2010. This year, it is likely to go down further," he said.

Ergun said he made his earlier remarks to highlight the need for production of new brands and models in Turkey and to increase auto exports.

He added that Turkish government would keep following fiscal and monetary policies that would not damage productive power and abilities of the real sector.


/World Bulletin/