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DMM had denied claims that Şimşek would increase VAT: A price hike is coming!

The Ministry of Treasury and Finance is preparing to increase VAT rates in restaurants and cafes. A draft communiqué on the subject has been published on the Revenue Administration's website. Before the March 31 local elections, claims that there would be a VAT increase had been denied by the DMM.

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The Ministry of Treasury and Finance is preparing to increase VAT rates in restaurants and cafes.

According to the draft communiqué on the subject, an amendment will be made to the article of the General Communiqué on Value Added Tax that regulates the VAT rate in places where food and beverages are served. The VAT rate, which is 8 percent in places where food and beverages are sold, will be increased to 10 percent, and the 18 percent VAT rate will be increased to 20 percent.

Accordingly, the VAT rate in restaurants, including coffeehouses, cafeterias, patisseries, and catering companies, will increase from 8 percent to 10 percent. The 18 percent VAT rate applied to alcoholic beverages in these establishments will also be increased to 20 percent.

The VAT rate applied to services provided in places such as casinos, bars, dance halls, pavilions, taverns, and beer halls will be increased from 18 percent to 20 percent.

The draft communiqué will enter into force on the date it is published in the Official Gazette after opinions are received.


DMM HAD DENIED IT

It had been alleged that Minister of Treasury and Finance Mehmet Şimşek met with representatives of the business world, as well as chamber and stock exchange presidents, in a closed-door meeting before the March 31 local elections and said that there would be a price hike in SCT and VAT.

The Center for Combating Disinformation (DMM) stated the following in its statement regarding the subject:

"The claim that Minister Şimşek said at the meeting in question that there would be an intervention in the exchange rate or that there would be an increase in SCT and VAT does not reflect the truth. Speculative news made outside of the statements of authorized persons and institutions should not be relied upon."