MAKSIAD criticizes tariffs

THE ADDITIONAL tariffs were good in theory, but the implementation was faulty, according to Mehmet Sari, the President of Denizli Machinery Industrialists Businessmen Association (MAKSIAD). The sector is not suffering from the tariffs on machines themselves but some have been impacted by those imposed on spare parts for machines not produced in Turkey. Machines manufactured by Turkish producers are better and more functional than imported machines, Sari said. “However, various companies are importing machines and suffering from high foreign exchange. What we have here is better.”

Sari said the government would have solved the issue by increasing the customs duty on machine imports. Instead, tariffs were implemented on knives, cutting blades, measuring devices, indicators, panels and various other spare parts used in machine products that are not produced in Turkey, instead of machines that are already available in Turkey.

Sari called for the authorities to abandon additional tariffs on spare parts or the sector will not be able to compete in the global market because the costs of domestic machine production will increase significantly. These additional tariffs are problematic for machinery producers, Sari said, adding that the authorities should review articles regarding the machinery sector and implement additional tariffs on imported machines that are already produced in Turkey. Sari also asked for tax exemptions for companies who receive incentives to buy domestic machinery.