Erdogan denies plans for vat cut to fight economic crisis

Speaking to reporters after a signing ceremony in Ankara yesterday between Turkish Aerospace Industries (TAI) and Airbus, Prime Minister Recep Tayyip Erdogan said a new standby agreement with the International Monetary Fund could be finalized by year's-end. Stating that Turkey agrees with the Fund on some matters, Erdogan said, "Not many sticking points remain, and we're discussing the main principles." The premier said if the talks continue at their current pace, an agreement could be reached within weeks. Asked about the Turkish Industrialists' and Businessmen Association's (TUSIAD) call for a cut in value-added taxes (VAT) to help fight the economic crisis, Erdogan said that the government was not considering any VAT cut. Criticizing TUSIAD, Erdogan said the same groups pressing for a new standby agreement with the IMF also call for a VAT cut, yet the IMF is calling for the VAT to be raised. The government also opposes any VAT hike, he added. Erdogan also said they will soon announce details of a new package to counter the economic crisis.