Government support
11/09/2008
The Turkish government has announced a package of incentives to encourage manufacturers in leather and textile sectors to relocate to parts of the country that it wants to develop (mainly in the south east). Incentive package will be made available from 2009 until 2014.
Manufacturers with a minimum of 30 employees who qualify will receive 50% energy support, tax and customs exemptions, interest support, discount at social security premiums, a corporation tax discount, allocation of investment land, and zero-interest credit if they move, industry minister, Zafer Caglayan, said at a press conference on September 11.
Sector representatives welcomed the plan and said it was a positive initial step from the government.
However, Lemi Tolunay, chairman of the Istanbul Leather and Leather Products Exporters Association, said in a televised interview: "We are not satisfied 100% with the outcome of the plan; we believe that the creators of the plan did what they could and made many compromises. This is only a beginning. I asses it as positive step."
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