Italy’s Economic ​Diplomacy – Turkey: the Government launches two new business incentive programmes

The Turkish Government has launched two new business incentive programmes. Prime Minister Binali Yıldırım announced a development incentive package worth 140 billion Turkish lira (approximately 42 billion euros) for 23 provinces of eastern Turkey. The Government will contribute 62 billion and the rest will be financed by the private sector over a four-year period. The package includes investments in projects in the area of infrastructure, construction, industrial plants, hospitals, stadiums and irrigation. The Government aims to create 40,000 new jobs through 800 new industrial plants to be opened over the next 10 years. The Government has also published a new law to support project-specific investments. Some of the measures envisaged provide a corporate tax abatement of up to 100% over the 10-year period, a 49-year free lease contract for state-owned property, subsidised national insurance premiums, a subsidy of up to 50% of energy costs, subsidised interest rates, purchase guarantees, support for infrastructure, a special consumption tax exemption on commercial vehicles purchased before June 2019, further incentives for the use of state-owned property for tourist facilities. For more information go to http:// www.invest.gov.tr/en-US/infocenter/news/Pages/turkey-grants-new-incentives-for-eligible-investments-on-project-basis.aspx.