IMF Says Turkish Tax Cut Plans `Inconsistent' With $10 Billion Loan Accord

(Bloomberg) -- The International Monetary Fund said
Turkey's plans to cut sales tax on tourism and food are
``inconsistent'' with a $10 billion loan accord.

``The government did not consult with us'' on the plans to
cut sales tax on tourism and some food items to 8 percent from 18
percent, Hugh Bredenkamp, the fund's representative in Ankara,
said in a telephone interview today. ``Any initiative that erodes
the'' Value Added Tax, or VAT, ``base would be inconsistent with
commitments under the IMF-supported program.''


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