ANKARA, Nov 29: Prime Minister Recep Tayyip Erdogan announced reductions on Tuesday of five and 10 percentage points in income and corporate tax in a bid to boost investment and combat Turkey’s giant unregistered economy.

Corporate tax will be lowered from 30 to 20pc, while income tax for self-employed taxpayers will be cut down to between 15 and 35pc from 20 to 40pc, Erdogan told his party caucus.

“This is a very important step to improve the investment environment,” he said. “It will also boost our competitiveness with European Union countries.”

Erdogan said the reductions “will also eradicate a pretext” for tax evasion and warned: “Those who continue to work unregistered despite all these improvements will be severely punished.”—AFP