Rail system investments will be exempt from VAT

Rail system investments will be exempt from VAT
Rail system investments to be made within the scope of 2023 targets will be exempt from VAT. Municipalities will also benefit from the incentive
The government pressed the button for VAT exemption for rail system infrastructure works within the scope of 2023 projects. Accordingly, urban rail transportation systems, metro, tram, cable car, chair lift investments will be excluded. In addition, the lines, stations, passenger terminals and stop works of these roads will be exempt. At the last moment, the government added a tax incentive to rail system investments by adding a surprise item to the bag law proposal for the sale and promotion of alcoholic products. All rail system works within the scope of 2023 targets will benefit from the incentive. In addition, tax exemption will be valid not only in the transfer to the Ministry of Transport but also in the transfer and delivery between the municipalities. The implementation is expected to continue until December 31, 2023.



MUNICIPALITIES WILL STRENGTH
The regulation made with the proposal will strengthen the hand of local governments in investments. The goal is to take over all the lines such as the metro, especially the city rail transportation system, and complete them as soon as possible. Ministry of Transport officials stated that the regulation came to the fore especially for giant projects in Istanbul. According to the decision, taxes imposed on deliveries and services within the scope of 2023 will be deducted from the tax calculated due to taxable transactions. Taxes that cannot be remedied by the discount will not be refunded.

Source : www.sabah.com.t is





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