A value added tax (VAT) exemption for steel is expected to become effective in the near future in Turkey.
Accordingly, billets kept in warehouses approved by the London Metal Exchange (LME) may benefit from the VAT exemption. The new legislation will allow Turkish billet merchandisers to deliver into LME warehouses VAT free.
The VAT exemption is considered as a part of a stimulus package which is designed to decrease the negative influence of the global downturn on Turkey, and which includes tax measures and steps aimed at boosting employment.