Turkey’s coronavirus pandemic response.
The world economy suffers due to coronavirus pandemic. Almost every country on the planet experience a decline in economic activity. The International Monetary Fund compares it with the Great Depression of The 1930s when many people lost their jobs, houses and couldn`t afford a proper meal.
Change in economic indicators 1929–32
United States | United Kingdom | France | Germany | |
|---|---|---|---|---|
Industrial production | −46% | −23% | −24% | −41% |
Wholesale prices | −32% | −33% | −34% | −29% |
Foreign trade | −70% | −60% | −54% | −61% |
Unemployment | +607% | +129% | +214% | +232% |
Source:Jerome Blum, Rondo Cameron, Thomas G. Barnes,The European world: a history(2nd ed 1970) 885 pp.
We can`t measure yet the results of ongoing crises.
Next survey presents increasing concerns among SMEs.
SME Surveys on the Impact of COVID-19 (coronavirus pandemic) | |||
|---|---|---|---|
Date | Country | Coronavirus pandemic impact on business | Expectations |
10 Feb. | China | 80% of SMEs have not resumed operations yet | 1/3 out of business in 1 month, another 1/3 in two months |
25 Feb. | Finland | 1/3 anticipated a negative or very negative impact | n.a. |
Early March | Italy | 72% directly affected | n.a. |
Early March | UK | 63% see crisis as moderate to high/severe threat to their business | n.a. |
9 March | Germany | 50% expect a negative impact | n.a. |
9 March | Japan | 39% report supply chain disruptions, 26% decrease in orders and sales | n.a. |
10 March | Poland | 1/3 of SMEs experience increasing costs and reduced sales | 27% already encounter cash flow problems |
11 March | USA | 70% experience supply chain disruptions, 80% the impact of the crisis | n.a. |
12 March | UK | 69% experience serious cash flow problems | 1/3 fear being out of business in 1 month |
13 March | USA | 23% negatively affected, 36% expect to be | |
16 March | Canada | 50% drop in sales | 25% expect not to survive longer than 1 month |
16 March | Israel | 55% experienced no impact yet, 1/3 planning lay-offs | n.a. |
16 March | Greece | 60% experience marked decline in sales | n.a. |
17 March | USA | 50% negatively affected, 75% very concerned | n.a. |
17-20 March | Korea | 61% have been impacted | 42% fear being out of business in 3 months, 70% in six months |
18 March | Belgium | 75% report declines in turnover | 50% fear not to be able to pay costs in the short term |
19 March | USA | 96% have been affected | 51% indicate not be able to survive three months |
20 March | Hungary | 60% expect a decline in sales | n.a. |
20 March | Netherlands | 50% start-ups lost significant revenue | 50% expect to be out of business within 3 months |
21 March | Japan | 92% experience economic impact | n.a. |
24 March | Canada | 60% experience significant impact | 1/3 expect to be out of business in a month |
31 March-6 April | Several Asian countries | 30% of SMEs expect to lay off 50% of their staff. | 50% of SMEs have a month cash reserves or less |
1 April | United Kingdom | n.a. | 18% of firms could be out of business in one month |
1 April | United States | n.a. | 35% of small business out of business in three months |
3 April | Australia | Two thirds of small business experience the impact of the crisis. 41% experience a drop in income of 50% or more in the last two months | n.a. |
3 April | Belgium | 40% of companies see drop in revenue of 75% or more | 1 in 10 companies likely to face |
Source:Annex B; oecd.org
In order to minimize the negativities caused by coronavirus pandemic, governments take economic responses and change tax and fiscal policies.
TURKEY
If the company reduced working hours, it didn`t deduct a number of employees and employees meet the following conditions:
-Having fulfilled the last 60 days of service contract before the start of the Short Work Allowance application;
-In the last 3 years, at least 450 days must have been paid.;
then it is possible to benefit from the Short Work Allowance for a maximum of 3 months.
Turkish government paid 60% of the staff salaries for a period of three months and a daily allowance of 39.24 liras ($5.7) to workers forced to take unpaid leave – Short Work Allowance.
Payment of social security contributions (SGK Premium Payments) for some sectors, persons over 65 years old, and those with chronic diseases have been postponed.
Sectors:
Retail (including shopping malls),
Health Service,
Furniture manufacturing,
Iron, steel and metal industry,
Mining and quarrying,
Construction,
Automotive manufacturing,
Rent a car,
Logistics and transportation,
Cinema and theater,
Publishing activities,
Accommodation activities,
Food and beverage services,
Textile-apparel manufacturing,
Event and organization services.
On 31st July, VAT has been reduced to 8% from 18% until 31 December 2020 on the following: events and conferences; cultural events; domestic repairs; hospitality services.
Hotel accommodation and services are free of VAT until November.
Air transport, domestic flights VAT has been reduced from 18% to 1% for 3 months.
Corporate tax-paying have been postponed.
Bank loan and interest payments are postponed for at least 3 months.