VIDEO: Gov’t hints VAT cut for Eurasia Tunnel to ease recent toll hikes

Gov’t hints VAT cut for Eurasia Tunnel to ease recent toll hikes

ANKARA

The Turkish government has signaled a value-added tax (VAT) cut to ease the recent toll hikes for Istanbul’s Eurasia Tunnel.

Tolls to use the Eurasia Tunnel, the first ever road tunnel connecting Europe and Asia underneath the Bosphorus Strait, have been hiked by 26.5 percent, according to ATAŞ, the company that operates the tunnel. Hiked prices went into the effect on Feb. 1. As a result of the rise, the one-way toll for passenger cars has increased to 21 Turkish Liras from 16.6 liras, while the toll for minibuses has been hiked to 31.5 liras from 24.9 liras.

On Feb. 1, Transport Minister Ahmet Arslan said the VAT for the Eurasia Tunnel would be slashed from 18 percent to 8 percent.

With this VAT cut, the one-way toll for passenger cars will decrease from 21 liras to 19.2 liras, said Arslan.

The transport minister said the tolls for the tunnel were calculated by considering the foreign exchange rate differences between Jan. 2, 2017 and Jan. 2, and the parity differences reflected in the tunnel tolls as of Feb. 2.

“The toll hike for passenger cars were a bit high due to dramatic fluctuations in foreign exchange rates over the last year. We have pushed the button to make a cabinet decision to decrease the VAT on the tunnel tolls. I have signed the decision, which will become effective as of tomorrow night after it is published in the Official Gazette,” he said.

euroasia, tunnel, vat

http://www.hurriyetdailynews.com/govt-hints-vat-cut-for-eurasia-tunnel-to-ease-recent-toll-hikes-126683

kcontents

.