Savaş Akcan, Chairman of the Board of the Turkish Ornamental Plant Growers Union (SÜSBİR) and Deputy Chairman of the Turkiye Seed Growers Association (TÜRKTOB), made a statement about the VAT rate applied to ornamental plants.
In his statement, Akcan emphasized that the ornamental plants sector has an important place in plant production and produces high added value. Reminding that the foreign trade volume of the sector, which produces on an area of approximately 54 thousand decares in the country, is approximately 170 million dollars in 2021 and that it has an export surplus of 72 million dollars, Akcan said that various supports, especially VAT reduction, are needed to boost exports even more.
“18 pct VAT means negative discrimination in the ornamental plants sector”
“Ornamental plants such as seeds and seedlings are also considered as propagation materials and their legislation is regulated by the Seed Law. However, while VAT rates vary between 1 pct and 8 pct in all propagation materials (seeds, seedlings, saplings) within the scope of the seed law, ornamental plants VAT is 18 pct, where there is a negative discrimination against the sector,” Akcan noted.
Within the scope of Covid-19 measures, VAT on ornamental plants was temporarily reduced to 8 pct with the President’s Decision dated July 31, 2020. This regulation ended on September 30, 2021 and VAT was again applied as 18 pct.
“We have to increase the production of ornamental plants because of their positive contribution to human psychology, to expand green areas in changing and developing cities, to contribute to the reduction of carbon emission rates. Our primary expectation to rise production is VAT to be reduced to 8 pct,” Akcan concluded…