This conflicts with Community legislation. There are no special schemes for farmers and small enterprises. Under Turkish law there is a supplementary tax to compensate for the difference between application of the prior production tax and the VAT rates. In January 2000, Turkey introduced a change aimed at bringing the treatment of exempted imports into line with the Community acquis . According to the last report, substantive alignment is still required concerning VAT, particularly as regards the application of VAT rates and the scope of exempt transactions.
Turkish law provides for a single-stage consumption tax on a very wide range of products.
This usually applies to the same goods as those subject to Community duty. However Turkish law does not reflect the Community acquis in this area. Turkey applies very high rates of ad valorem duty and makes no provision for suspension of the duty within a warehousing system. According to the last report, substantive alignment is also required in the structure of both duties and levels of duty. It also requests further clarification regarding the issue of equal taxation of excisable goods irrespective of their origin.