immac

From SABAH:

VAT reduction in food; consumers wait for good news from the market


VAT reduction in food was published at the official gazette yesterday. It is expected that the reduction will affect the consumers as a 10% discount in the markets from tomorrow.

VAT reduction which has been on the agenda for nearly 1.5 year has been published in the official gazette yesterday. With the decision of council of ministers, the VAT rate dropped from 18% to 8% in many products. The new rate regarding cacao and soft drinks will become effective as of 1 January 2008. In the other products, the new rate will become effective as of June 1. So, the reduction of 10% is expected to affect markets starting from tomorrow.

Publish Date: 31.05.2007

immac

While shopping in Migros over the past few weeks I noticed that some food items were going up in price. One example was an item priced at 2.64 suddenly jumping up to 2.96, then with the reduction in KDV (VAT) from 18% to 8% yesterday its new price is 2.64! That represents about a 10% increase hidden in this tax reduction.

Ian