Türkiye on Friday revealed a comprehensive action plan aimed at streamlining legislation and administrative processes concerning investments to create tangible and lasting effects in the short term.
The 57-point plan, unveiled by the Investment Environment Improvement Coordination Council (YOIKK), focuses on proposals for reforms intended to facilitate the legislation, administrative, and judicial processes related to the investment environment.
Chaired by Vice President Cevdet Yılmaz, the council said it aims to complete most of the legal and administrative regulation and technical work outlined in the plan by the end of 2024, thereby creating concrete and enduring impacts on the investment climate.
According to YOIKK, the plan concentrates on proposals that address reducing the current account deficit, facilitating the export of goods and services, responding to financing needs, and enhancing employment opportunities and workforce qualifications.
The statement also said that "necessary preparations are being completed before submission to Parliament" for legislative needs in areas such as competition and climate included in the plan.
Among the transformation areas outlined in the action plan are simplifying and facilitating legislation, administrative, and judicial processes related to the investment environment, developing investment site opportunities primarily for industry, and providing target-oriented and selective investment financing.
Furthermore, the plan highlights the support for the entrepreneurship ecosystem, expanding communication and logistics connections, accelerating digital and green transformation in the industry, implementing practices such as emission trading systems and carbon regulation, addressing the needs of vocational education and labor markets, aligning the education system and other public policies to meet workforce demands.
Other key points highlighted in the plan include:
- Conducting studies to determine the authorization policy regarding 5G
- Simplifying legislation through reducing exceptions and discounted rates in value-added tax (VAT)
- Determining the legislative needs for new-generation flexible work models such as remote, part-time and temporary work, considering business requirements and work-life balance
- Simplifying investment incentive legislation
- Utilizing incentive mechanisms effectively to attract large-scale data center cloud services to the country
- Making a regulation to redirect individual pension funds toward venture capital funds
- Implementing incentive mechanisms to accelerate the green and digital transformation of industry
- Conducting labor market research considering the effects of green and digital transformation to determine workforce needs
- Reviewing Turkish tax legislation to regulate carbon content taxes based on emissions
- Developing financing models for the creation and allocation of planned industrial areas
- Creating an Industrial Areas Master Plan.
- Conducting strategic prioritization studies regarding long-term investment loans
- Expanding the use of convertible financing instruments
- Increasing the foreign investment limit for venture capital investment funds
- Submitting legislative proposals to Parliament for the resolution of certain disputes in which the administration is involved through reconciliation.