Özgür Özel calls for VAT reduction

CHP Chairman Özgür Özel met with ornamental plant producers in Yalova to listen to the sector's challenges. Speaking after the meeting, Özel stated that high costs, exchange rate pressure, and the tax burden are weakening the competitiveness of producers.

Noting that Yalova was once a major center for floriculture and ornamental plant production, Özel expressed that producers must be heard directly for the sector to regain its strength. He stated that proposals regarding Yalova and ornamental plant producers would be included in the upcoming election manifesto and government program.

Emphasizing that VAT is one of the most significant issues for producers, Özel said that the increase in the tax rate to 20 percent on sales, while input taxes remain low, is putting a strain on the sector. Özel argued that the VAT on ornamental plants should ultimately be 1 percent, but proposed a phased approach to achieve this.

Özel stated that a VAT reduction would increase the appetite for production, contribute to the renewal of greenhouses, and support competitiveness in exports. Noting that the 8 percent rate applied during the pandemic period gave the sector "room to breathe," Özel expressed that the current 20 percent rate creates a heavy burden on producers.

Touching on exchange rate policy, Özel said that the suppression of the exchange rate creates problems for producers who export. Stating that costs have increased by 30, 50, and 70 percent, Özel noted that keeping the exchange rate at the same level reduces the ability to compete in foreign markets.

Criticizing the lack of planning in agriculture, Özel described the closure of the State Planning Organization as "one of the biggest mistakes." Stating that the establishment of a "Turkey Planning Agency" is included in his party's program, Özel said there is a need for long-term planning in agriculture, rural life, and zoning policies.

Expressing that life in villages needs to be strengthened, Özel advocated for supporting rural production through the assignment of teachers, agricultural engineers, and veterinarians where possible. Özel also stated that young farmers moving away from agriculture is a serious risk for Turkey.

Drawing attention to the pressure on zoning and agricultural land in Yalova, Özel said that the lack of planning security leads to speculation. Özel emphasized that cities should be managed with public-oriented and long-term plans, not rent-seeking ones.

Özel also stated that they would follow up on the legislation regarding the requirement for landscape architects' signatures in municipalities, pointing to the importance of cooperation with professional organizations for proper urbanization. At the end of the meeting, he said they would protect Yalova's agricultural potential.

News Source: 12punto