Akhisar Commodity Exchange Chairman of the Board Alper Alhat said that with a 7 percent reduction in olive oil, both the producer, the consumer and the state will win.
Alhat said, “Consumption, which has fallen to the level of 1.4 kilograms per capita, will increase again. Production will also boost due to rising demand and the state will gain because the informality will decrease. We also expect a fall in the retail shelf prices of olive oil from the week beginning.”
“President Erdoğan’s statement that they have reduced the VAT from 8 percent to 1 percent on basic food products, including olive oil, within the scope of the VAT System Simplification Programme has been greeted with joy in the olive oil industry,” Alhat added.
Reminding that they have been lobbying for premium support for olives and VAT reduction in olive oil for 9 years, Alper Alhat explained, “Our farmer produces the world’s best quality olive and olive oil. Support is essential for sustainable production. Within the scope of these studies, we received premium support for table olives in 2019. We were expressing on all platforms that the VAT on olive oil should be reduced to 1 percent, thank God, this has also happened.”
Stating that they will not give up on bringing all the problems of the producer to the relevant authorities as the Akhisar Commodity Exchange, Alhat concluded, “While 30 percent customs duty is waived on the import of other vegetable oils, this situation causes unfair competition in 100 percent domestic olive oil. Now it is time for that. If the olive oil sector is supported by 30 percent, this farmer will plant olives all around.”