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.