Union of Chambers and Commodity Exchanges of Turkey

Hisarcıklıoğlu stated that the law #5084 regarding ‘Investment and Employment Incentives’ needs to have its duration extended. Hisarcıklıoğlu emphasized the importance of the great demand among SMEs in Anatolia to have this implementation extended, which will otherwise end on the 31st of December, 2012.

Stating that, thanks to this law, there has been significant increase in registered employment figures, Hisarcıklıoğlu said, “The implementation period of the employer share insurance premium support for establishments employing over 10 employees in provinces as per the #5084 Incentive Law will reach the end of its duration on the 31st of December, 2012. The said incentive implementation has significantly reduced costs for labor-intensive SMEs, allowing them to engage in new enterprises thereby increasing employment even further. This implementation has also allowed many SMEs in Anatolia to enter global markets and engage in exporting. There have also been significant increases in registered employment figures in the last five years.”

Hisarcıklıoğlu stated that the global economy has yet to come out of the economic slump and that domestic markets are experiencing a slow down. He stated that the end of this implementation could result in unemployment and social unrest in Central Anatolia, Eastern and Southeastern Anatolia as well as the Black Sea regions.

Also pointing out that there will be unjust competition between the companies which continue o benefit from the incentives and those who don’t as well as the companies which can benefit from it and those which are not eligible, Hisarcıklıoğlu said, “As economic growth loses momentum; investment and employment volumes are becoming static, let’s not trip ourselves up. We see great benefit to the government boosting morale to the real sector in production and investment. The extension of this implementation’s duration will mean the continued production, employment and exports of our SMEs as well as gains in regards to registered economy.”

- Regarding the law

The law #5084 regarding ‘Investment and Employment Incentives’ entered into effect in 2004, the first implementation term ended on the 31st of December, 2009. Afterwards with an amendment from the Grand National Assembly, the duration was extended to the 31st of December, 2012.

The employment incentive will cover 49 provinces and 2 islands (Bozcaada and Gökçeada and be active until the end of this year.
​