(MENAFN) Turkish Economy Minister Zafer Caglayan has announced increasing tax breaks on investments in the automotive industry by the double, as the government targets USD75 billion in car exports by 2023, Reuters reported.
According to the minister, the government will offer tax breaks of up to 60 percent for new investments and incentives including deductions on employee costs.
Turkey is actively moving to boost its exports in a bid to cut its chronic current account deficit, caused largely by the fast-expanding economy's high energy imports, which is leading to a trade deficit.
The current account deficit is a key factor that is holding Turkey back from securing a widely anticipated second investment grade rating.
The government is also targeting USD500 billion of total exports over the next ten years.
Last year, car sales in Turkey fell by 10 percent to 818,000 units, while exports dropped by 8 percent, hurt by weaker demand from Europe, which receives about 70 percent of its total auto exports.
Turkey's auto industry has invested around USD7 billion in new projects, research and development and plant capacity expansions since the incentive scheme was launched in 2009.