The Turkish prime minister announced measures to encourage consumer spending to avert recession in a speech yesterday.

In the speech he said that:

• The sales tax on new homes would be reduced from 18 percent to 8 percent for 3 months;
  
• Consumer credit charges on new homes would be cut by 5%;
  
• The taxes on new cars would come down;
  
• The taxes on household electronics would also come down.

No specific figures or time scales were provided for the tax reductions on cars or household electronics in the speech but they may take the form of a cut in the VAT rate.

Watch this space for the final announcements.