New Law on Consumer Protection Aims to Boost Exports – Breaking News
The Turkish Grand National Assembly Accepts Bill to Support Domestic E-Commerce Companies
A new bill has been accepted in the General Assembly of the Turkish Grand National Assembly, aimed at supporting domestic e-commerce companies and creating a more level playing field in the market. The Bill on Amendments to the Law on Consumer Protection and Some Laws seeks to address the imbalance experienced by Turkish e-commerce companies in comparison to global players in the industry.
The amendment made to the e-commerce law will now require non-resident foreign e-commerce platforms to adhere to certain obligations, such as Corporate Tax, Digital Service Tax, Digital Advertising Withholding Tax, and Electronic Commerce Law (ETK) in Turkey. Previously, these foreign companies were not subject to the same regulations as resident e-commerce platforms, giving them a competitive advantage.
With the introduction of restrictions and regulations regarding advertising, discounts, announcements, and own branded product sales, the Turkish government aims to ensure a fair and competitive environment for all players in the e-commerce market. The law also incentivizes e-commerce platforms to contribute to exports, with the goal of supporting Turkish entrepreneurs in selling products abroad.
It is estimated that Turkey’s exports will reach 375 billion dollars and e-exports will reach 37.5 billion dollars by 2028. The changes made by the Turkish Grand National Assembly are expected to positively impact all tradesmen and SMEs that export through domestic e-commerce platforms.
Additionally, the amendment to the Law on the Regulation of Electronic Commerce will provide incentives for high technology investments and cross-border electronic commerce activities of electronic commerce service providers. Sales made abroad through marketplaces and with the incentive certificate of the Ministry of Industry and Technology will see twice the total investment expenses deducted from the net transaction volume for calculating the license fee.
Overall, it is anticipated that these changes will stimulate significant growth in the e-commerce sector, with a projected volume of 10 billion dollars triggered by the export exemption given to marketplaces. The Turkish government is committed to supporting domestic e-commerce companies and fostering a competitive and thriving market for all players.
