Turkish Parliament approves anti-crisis package

ANKARA. February 20. KAZINFORM A comprehensive package of measures on which the government had been working to protect the Turkish economy against the global financial turbulence was passed by Parliament on Wednesday.

Aimed at easing the burden on companies and minimizing losses in the economy, the package introduces incentives for small and medium-sized enterprises (SMEs) that have been seriously battered by the crisis. The term for special payments, known as short time benefits, providing support from the unemployment fund for temporarily laid-off workers was increased to six months. Previously, the term was three months. Likewise, the amount of short time benefits was increased by 50 percent. With the package, the government expects to decrease the corporate tax to encourage new investments so as to accelerate financial development, increase employment and minimize the gap in improvement between the regions. The Cabinet will have the authority to decrease the corporate tax by 5 percent for the next five years; Kazinform cites Today's Zaman. According to the package, textile companies and leather manufacturers and dealers will be encouraged to aggregate in trade zones in which the government will reduce taxes. Also, the special communication tax on Internet service has been reduced to 5 percent from 15 percent. The package will be sent to President Abdullah Gyul for approval and will come into effect shortly thereafter.