Turkey lowers taxes on basic foods to fight high inflation

By ZEYNEP BILGINSOY
Associated Press

ISTANBUL (AP) — Turkey’s president has announced a significant reduction in taxes on basic food supplies as the country faces rampant inflation and numerous protests over eroding living standards. President Recep Tayyip Erdogan said the value-added tax would be lowered to 1% from 8% on food purchases and he expected companies to also lower their prices by 7%.  A currency crisis was triggered by the interest rate cuts pushed by Erdogan. Turkey relies on many food and energy imports, so prices have skyrocketed. Official data shows that inflation in January rose to a staggering 48.69% annually, although independent experts say the true number is much higher, more than 115%.