With one of the highest rates in the world Turkish communication tax comes under the spotlight.

Well what a week it’s been for price reductions! First car prices, next bus ticket prices and now reduced phone taxes are on the cards.

The Government has promised to look at reducing the sky high tax rates it imposes on telephone, internet and mobile communication bills during 2007. Turkey imposes some of the highest tax rates on communications in the world with mobile phone calls taxed at 56% and normal land lines at 44%. In some cases there are as many as 5 different taxes levied on these bills ranging from VAT to a special tax introduced after the Izmit earthquake in 1999 to help finance rebuilding costs. The Government hasn’t agreed yet by how much the taxes will reduce but have indicated that their preference would be to aim for a VAT only charge of 18%.