Turkey is planning to reduce the rate of VAT on rice to 1 percent. The Prime Minister Ahmet Davutoğlu giving a speech on the issue in Tekirdağ stated that they are planning to take the legislation to the cabinet. The Prime Minister Ahmet Davutoğlu announced in Tekirdağ that they will reduce the VAT on rice to 1 percent. So, the VAT rate of the last products of which VAT is 8 percent will reduce to 1 percent.   Davutoğlu said: “We will discuss it in the next cabinet meeting; we are reducing the VAT on rice from 8 percent to 1 percent. I know that Tekirdağ and Thrace wait for good news.” The head of National Grain Council (UHK) Murat YılmazKart pointed out that rice consumption of Turkey reduced from 10 kg to 5.5 kg and this poses a danger for the sector. Yılmazkart who mentions about the importance of VAT’s being reduced to 1 percent said that this issue was discussed by UHK in National Paddy Rice Panel in Edirne for a substantial solution of sectorial problems. Mustafa Yılmazkart who stated that the reduction decision for paddy rice will give acceleration to the sector added as follows: “Paddy rice production of Turkey increased in a large extent and has come closer to 1 million ton in the recent years. Along with this, investments are made to modern paddy rice plants. While VAT of all the grains is 1 percent, 8 percent for rice affects the sector seriously. Producers and Plant owners had difficulty in marketing their products.  VAT rate’s reduction to 1 percent will bring positive reflections together.”