Tuesday , January 19 2021

'VAT will not be invested with these interests immediately'

Istanbul Chamber of Industry (İSO) Chairman Erdal Bahcivan, regarding interest rates "With these interest rates Turkey to make new investments, even in the presence of the current is not possible. Therefore, we need to make absolutely sure that inflation and interest rates are within the line of financial stability. " İSO Chairman Erdal Bahçivan was the guest of AA Finance Desk. The gardener, who pointed to recent developments in Turkey, said that politics and social life were intensive for 2.5 years. Explaining that the immunity of the economic world is falling from time to time during this period, the gardener has emphasized the importance of preserving financial stability. A gardener has begun to form a new economic program under the responsibility of Treasury and Finance Minister Berat Albayrak, saying that the main problem lies in being away from financial stability. Since the last 2-2.5 months, we have been following the efforts of financial stabilization. First of all, volatility in foreign exchange and hard movement are trying to draw a certain line. In the last weeks we see that it has achieved success step by step. Some countries are inflationary, some countries are vulnerable to unemployment. Turkish economy, Turkish social life is also vulnerable to beating. It was very important for the currency to sit on the balance. Right now, there are important positive developments. We need to balance inflation behind this. Turkey does not have the luxury of re-experiencing hyperinflation. Inflation is the father of all evils. Double-digit inflation needs to be lifted from our life as soon as possible. If you are going to play in the league of success, you need to remove inflation from your agenda. Sure, it will take some time, we need a little saucer here. Then the interest must settle in balance. We can see that the interest rates are going backwards from the highest level now, but it is not possible to say that this is a competitive interest rate for the Turkish industry. "


When such a burden on the real sector arises it indicates that the banking sector to which this real sector belongs also appears to be a risk and this also negatively affects the borrowing of the banks from the outside, said: "So we should have taken lessons from the past. We need to charge each company with such easy currency. I want to draw the gold here, too. Perhaps the most important sensitive lesson we have to make about the future is shudder. Using foreign currency loans in Turkey has to be an incentive instrument. The main issues that will contribute to the current account deficit are the fact that every investor, except strategic investments, is a method that is not very convenient for us to go to the bank and easily borrow in foreign currency. We have seen this process within a process that is abundant for a country economy that uses a savings. Banks unfortunately have not been able to discipline themselves in this regard, and I want to regret it. Our real sector has not been able to discipline itself as competently. So it is necessary to take some issues in a disciplined and disciplined way. "


Erdal Bahççı, Chairman of Istanbul Chamber of Industry (İSO), said that the real sector has a foreign exchange debt of approximately 220-230 billion dollars. "This debt is not a debt that can not be removed for the Turkish economy. When you look at the world today, the debt ratios of Turkey are still below the majority of the world's samples. " Evaluating the increase in exchange rates and the sectoral effect of the subsequent decline, Bahcuvan said that the foreign exchange problems in Turkey are different from the present ones. "And each one of them is unfortunately a serious havoc when it plays in this foreign exchange on the bilateral side of Turkish companies," he said, explaining that the most important factor that separates the current foreign exchange troubles from the past foreign exchange troubles is the very serious foreign exchange liability over the real sector.


Erdal Bahcivan regarding interest rates, "Turkey with these interest rates to invest in new investments, even in the presence of the possibility is not sustainable. That is why we must make absolutely sure that inflation and interest rates are within the line of financial stability. Maybe Treasury's interest rates are down by a couple of points, which is gratifying, but the banks are not very strong at the point where they have formed, in order to lower deposit rates yet depending on inflation. From the outside, yet to the extent desired, strong, the flow of funds to relieve Turkey is not provided, "he said. He explained that there is not enough depth in the capital markets in Turkey and that everybody at the point of using the resource is the bank that comes to mind, the gardener said that this causes the demand for the bank too much. The gardener said he was trying to meet all the needs of the real sector from the banks, saying, "This can lead to the possibility that the banks sometimes overtake the real sector at times beyond their limits."


Erdal Bahçivan has made the following evaluations of VAT reform: "VAT has entered our life in 1980s. Rates have changed in VAT over the years. The burden of financing on production should be reduced as much as possible, brought to justice, or even removed from its roots. Looking at today, VAT entering my life as a consumption tax has become a tremendous financial burden on industrialists who have come out of being consumption tax. There are several reasons for this. Industrialists are making production, buying land, investing KDV always stays on. Last year, the largest 500 industrial companies have a VAT payload of 7-8 billion pounds. We estimate that there is a 70-80 billion pounds VAT on the real sector. We took VAT application as an external model in the day's conditions. There are also a number of drawbacks due to VAT. Unfair competition is one of the most fundamental causes of out of record VAT. Many sectors are selling VAT without VAT for 18 percent VAT. There are those who want to get rant on VAT at the root of a problem in our life like nylon bill. There is a vast amount of employment and time-consuming issues in the state-run business. There is an important business burden on the financial bureaucracy dealing with VAT. A 30-odd-year-old practitioner is now in rehabilitation, "the check-up has to be deposited. We are talking to our ministry. Every country has its own tax model. I have doubts as to whether VAT is beneficial or harmful to Turkey's interests and real entrepreneurship. "This is a recommendation by the industrialists about the arrangements that can be made in the VAT Gardener," We are now taxing our state with VAT. On the other side, you will borrow 30% of the amount and pay VAT to the endless state with zero interest. Is this fair? If this money is left in the company, it will be more valuable in terms of business, investment and production. I also need to look at it. "


The gardener has also shared his views on the fact that many companies have recently made arrangements and declared concordats. Speaking about the unfairness of the controversy over the concordatons, Bahcuvan concluded: "The concordat is an application in the world receivable system. If applied correctly, it is an opportunity for firms that want to breathe a bit but if we abuse it at a very high level, there is a confusion between ambition and ambiguity. It's wrong even if it turns into speculation. We are pleased to see that the recent concordate demands have been tightly controlled. We are never in a position to think that the concordat is a complex root, but we are worried that the right concordatreal demands will lose value after a certain period of practice. "

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