The "Presidential Decree on State Aids for Investments" was published in the Official Gazette dated May 31, 2025, and entered into force.
With this decree, a comprehensive incentive reform has been launched for the iron and steel industry, which is among Türkiye's strategic sectors. The new system aims to support investments that will increase production capacity, accelerate environmental transformation, and strengthen domestic production through stronger mechanisms.
According to the statement from the Turkish Steel Producers Association (TÇÜD), with the new system, investments in the iron and steel sector continue to be supported under five different incentive mechanisms. It is stated that these incentives vary depending on the scale of the investment, its technological content, geographical location, and environmental impact.
General Incentive Implementation
Iron and steel facilities can benefit from general incentives if they meet the minimum investment amount. Within this scope, basic supports such as VAT exemption and customs duty exemption are offered. It is particularly noted that small and medium-sized projects such as modernization and capacity increase benefit from this implementation.
Regional Incentive Implementation
In this system, where support rates vary depending on the region where the investment is made, additional advantages such as tax reductions, employer’s share of insurance premium support, and interest support are provided. Investments in regions where iron and steel production is concentrated—such as the Marmara, Black Sea, and Mediterranean regions—can receive incentives at different levels under this scope.
Incentives for Priority Investments
Sustainability-focused investments such as energy efficiency, carbon emission reduction, and environmentally friendly production fall into this category. Applications such as wind-solar power integration (RES–GES), green transformation projects, and waste recovery are considered priority investments and can benefit from additional incentives such as higher tax reductions, long-term social security premium support, and VAT refunds.
Incentives for Strategic Investments
Large-scale investments with high technology content targeting iron and steel products that Türkiye is dependent on imports for are evaluated within this scope. It is stated that strong incentives such as allocation of investment land, interest support, VAT refund, and tax reduction are applied to investments targeting products such as flat steel and high-alloy steel.
Project-Based Incentive System (Super Incentive)
A project-based incentive system is being implemented for high value-added, integrated iron and steel production facilities. Due to the sector’s energy-intensive nature, projects integrating wind and solar power (RES–GES) investments are also evaluated within this scope. It is stated that this type of incentive provides special supports such as qualified personnel support, infrastructure investment contributions, and energy and capital support.
It is stated that the new system aims to make iron and steel investments more competitive and sustainable in line with Türkiye’s green transformation and advanced technology goals in industry.
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