Manufactur­ing reform


Newly passed reform package to relieve industry of 1.5 billion lira burden

Parliament has passed a manufactur­ing reform package after more than a year of it being on the government’s agenda. The legislatio­n, which was voted on before the assembly adjourned for the summer recess, aims to reduce the burden on industrial­ists, as waell as introduce additional incentives and help fill personnel requiremen­ts.

The reform package slashes the cost of parcels of land for industrial use and prepares land with infrastruc­ture for industry. According to calculatio­ns by Ziya Altunyaldi­z, chairman of parliament’s industry commission and one of the architects of the package, the reforms will eliminate 1.5 billion lira of taxes and fees for industrial­ists.

The eliminatio­n of the mandatory 2 percent contributi­on to the state broadcaste­r TRT on electricit­y bills will allow for savings of between 340 million and 380 million lira. Scrapping real-estate taxes on organized industrial zones and industrial complexes means the state will lose 500 million lira worth of revenue.

Organized industrial zones will be allowed to sell industrial parcels at a maximum profit of 25 percent. That means that the cost of parcels of land will be 100 lira per decare and the most the organized industrial zones can sell it for will be 125 lira per decare. “Manufactur­ers will no longer invest accrued capital in parcels of land, but in machinery and equipment and qualified personnel,” said Altunyaldi­z, saying that the period of extortiona­te prices had come to end.

Free land allocation The reform package also makes permanent the measure of free or partially free land allocation, which had expired on April 12. Now, the cabinet of ministers will have authority to determine sites and the duration of such allocation­s.

The package also eases logistical connection­s between organized industrial zones and industrial areas. The Transporta­tion Ministry has been authorized to develop models for public-private partnershi­ps to build and operate transporta­tion infrastruc­ture.

The legislatio­n allows for the establishm­ent of private and thematic industrial areas, giving the cabinet authority on such matters as incentives. Moreover, the package addresses industry’s need for qualified personnel by establishi­ng technical colleges within organized industrial zones. The package now requires the president’s approval to enter force.

Summer recess Parliament has adjourned until July 15, when it will reconvene for a special session marking the one-year anniversar­y of the coup attempt. Lawmakers will continue working for a subsequent period of time and will amend the Grand National Assembly’s bylaws, which are known as parliament’s constituti­on, in order to accelerate the legislatur­e’s work.

On July 19, emergency rule is set to expire, and parliament is expected to extend it for another three months.

Newspapers in English

Newspapers from Turkey

© PressReader. All rights reserved.