Calis Beach and Fethiye Turkey Discussion Forum

Turkey Related Subjects => Cost of Living in Turkey => Topic started by: tribalelder on August 24, 2007, 05:05:30 AM

Title: KDV (Vat)
Post by: tribalelder on August 24, 2007, 05:05:30 AM: As some of you will know in 2008 the Turkish Government is reducing KDV from 18% to 8% for tourism establishments. I could be an interesting exercise to make a note of one or two restaurant prices this year and see if they do actually get reduced next year....I wonder! 8)
Title: KDV (Vat)
Post by: sominekebap on August 24, 2007, 09:08:10 AM: Could all be swallowed up though if this drought continues. The olive harvest is looking pretty grim and there's already talk of major price increases in olive oil. Once that goes up, it will have a knock on effect across the board.
Title: KDV (Vat)
Post by: wickwilly on August 24, 2007, 18:09:32 PM: Have to agree with you there Our trees are not looking to overladen with olives. Last year we had 250 litres of oil. We will be lucky if we get 150 this year. Might have to put our prices up to 6 YTL a litre!!

WW
Title: KDV (Vat)
Post by: sominekebap on August 24, 2007, 18:16:22 PM: I reckon it's gonna go higher than that this winter. And of course don't forget it'll snowball on everything else.

Remember with the hazelnuts and walnut harvest last year in Karadeniz where the growers were protesting about the low prices they were achieving to wholesalers. Turkey is gonna have to be careful - it could end up with some essential foodstuff pricing on par with the UK.

The average Turk household consumes a good 1-2 litres of olive oil every week. We get through 10 litres a week at the restaurant.
Title: KDV (Vat)
Post by: Twin Bee on August 24, 2007, 22:55:33 PM: So if olive oil increases by say 10 YTL and a restauarant uses 10 litres a week I make that an increase of 100 YTL a week. Assuuming a Resturant has 50 customers a day ie 350 a week that works out at about approx one third of a YTL per customer to cover the increase (about 10p). If KDV tax is going to be more than halved, surely this will more than compensate for the rise in olive aoil prices. Or am I being too optimistic!
Title: KDV (Vat)
Post by: tribalelder on August 25, 2007, 04:58:16 AM: It looks as though the excuses for not passing on the KDV reduction have already started.:(
Title: KDV (Vat)
Post by: Ian on August 25, 2007, 07:02:06 AM: Stuart - I really like your approach and I agree with your calculation.

However the downside is - you must be an accountant or a bank manager :D

Ian
Title: KDV (Vat)
Post by: KKOB on August 25, 2007, 09:53:19 AM: What's an accountant got in common with a sperm ?

Only one in a million have got a chance of being a human !
Title: KDV (Vat)
Post by: sominekebap on August 25, 2007, 10:34:27 AM: I am not being pessimistic just relaying what generally happens towards the end of each year. If there's any feasible reductions then prices will be reviewed.
Title: KDV (Vat)
Post by: cef on August 25, 2007, 10:53:29 AM: Much like Chips & Potatoes 8) Chip prices are Always Increased, when the price of Potatoes rises.....: :) But I've Never seen the price Reduced :o when the price of Potatoes falls again....:P

:o What goes up, doesn't always come back down again :( ;)
Title: KDV (Vat)
Post by: sominekebap on August 25, 2007, 11:02:31 AM: For some places, there's also the cost of reprinting new menus to take into account.
Title: KDV (Vat)
Post by: tribalelder on August 26, 2007, 04:39:29 AM: Just proves the point!
Title: KDV (Vat)
Post by: sominekebap on August 26, 2007, 08:05:28 AM: No. Just being realistic.
Title: KDV (Vat)
Post by: teresa321 on August 26, 2007, 11:31:37 AM: Just going to shops to stockpile olive oil.
Title: KDV (Vat)
Post by: sominekebap on August 26, 2007, 11:37:04 AM: yes teresa, good idea.
Title: KDV (Vat)
Post by: tribalelder on August 26, 2007, 16:29:37 PM: So are you saying the government tries to help tourism by reducing KDV but because Olive Oil goes up you want to use that money to reprint your menus[?]
Title: KDV (Vat)
Post by: sominekebap on August 26, 2007, 16:33:49 PM: No I am just pointing out some of the general issues.
Title: KDV (Vat)
Post by: sominekebap on August 27, 2007, 18:32:18 PM: The boss man is back and he says if there's any possibility of passing on savings we will definitely do it. So we will see. :-)