Coffee industry reaction to tax fraud in the United Arab Emirates
The comprehensive trade deal between Turkey and the United Arab Emirates (UAE) threatens the coffee industry in Turkey.
The rule establishing tax exemption for many products, including coffee, on imports from the United Arab Emirates (UAE) was published in the Official Gazette. Coffee producer Özgür Düzgün said that this situation will have a negative impact on coffee producers, roasters and consumers in Turkey and said: “The tax favor offered for thousands of products of origin from the United Arab Emirates will drive domestic producers of “Turkey bankrupt.”
Within the scope of the agreement, roasted coffee beans originating from the United Arab Emirates can be imported into Turkey duty-free. This situation will put domestic producers, who make up a large part of the coffee roasting industry in Turkey, in a difficult situation.
THE MANUFACTURER WILL RESOURCE TO IMPORTS
Following the tax exemption on products imported from the United Arab Emirates, it is one of the representatives of the coffee industry, which has a growth rate of 20-25 percent every year in Turkey and is therefore a important source of employment, with more than 25 branches in Turkey and around the world. Businessman Özgür Düzgün, chairman of the board of directors of the brand chain and also a coffee producer, stated that the coffee industry is heading towards a serious unknown.
Düzgün stated that the decision will encourage domestic producers to import and this will have a negative impact on the country’s economy. He also said that the decision will negatively affect coffee lovers and consumers.
OBJECTS OF THE DOMESTIC PRODUCER
Düzgün’s statements are as follows:
“The coffee industry grows between 20 and 25 percent every year in our country; but this growth is now in danger. Thanks to the comprehensive trade agreement between our country and the United Arab Emirates, announced on August 31, roasted coffee beans, which previously entered Turkey with a 17 percent customs tariff, can be imported with zero taxes from the origin of the United Arab Emirates.
Nearly 50 local coffee roasting companies in Turkey import coffee beans with an 8 percent tax and market them as a final product after going through processes such as roasting. As domestic producers, we oppose both zeroing out the tax and simplifying the “source procurement” process. One of the most important points to consider is that instead of paying an 8 percent tax, local roasting companies are ending their investments in Turkey and turning to supply from the United Arab Emirates, which drives imports.
‘THE ARMY OF THE UNEMPLOYED WILL INCREASE’
In this case, our already high foreign trade deficit will increase even further and the downward trend of the country’s economy will accelerate. However, employment will also be negatively affected as companies move their production facilities abroad. Coffee production facilities will move abroad and the army of unemployed will increase.
Furthermore, with this application, which was implemented without considering the front and back, the negativities that companies that roast qualified coffee in our country and ensure that the final consumer drinks quality coffee will also negatively affect coffee lovers and the coffee. consumers. The danger for the citizen is; If companies start importing lower-cost and unqualified products from the UAE instead of fighting the high costs, coffee habits and consumer taste in Turkey will be irreparably damaged.
The tax favor offered for thousands of products originating in the United Arab Emirates will drive Turkey’s domestic producers out of business. I think it’s time to review the famous saying, which has become a proverb and is a symbol of friendship and loyalty, with a small change. “Qualified coffee has a 40-year reputation.” (PHOENIX)