Super Incentives to Be Given for Health and Chemical Products

The Technology-Focused Industrial Initiative Programme, which envisions the domestic production of technology-intensive industrial products in Turkey and keeping approximately USD 30 billion in annual foreign currency within the country, has now issued an investment call for the chemical and health sectors, which the pandemic has brought to the forefront. First announced to the public in 2019, the Technology-Focused Industrial Initiative Programme is fundamentally aimed at producing high and medium-high technology products in Turkey, so that the money spent on their imports remains in the country. While a call was first made for the machinery sector in 2019, following successful results in this area, investment support was announced for the Structural Transformation in Production and Mobility sectors during the pandemic period. The Ministry of Industry and Technology has made its latest support call in this area for the chemical and health sectors, which have been on the agenda since the start of the pandemic. Support will be provided for a total of 421 products on a Customs Tariff Statistics Position (GTIP) basis in both sectors. Additionally, support will be provided for investments to be made in 16 categories under the heading of innovative technology field. Preliminary applications will continue until 13 September.

Support will be provided in 16 categories according to innovative technology field

Petrochemical intermediates and additives, Radar absorbing surfaces, Blood and blood products, Drug delivery systems for cancer and autoimmune diseases, Development and production of biotechnological medicines, Other pharmaceutical technologies, Personalized medicine, Vaccines and immunological products, Regenerative medicine and artificial tissue, IT-based innovative medical devices, Innovative medical imaging systems, Next-generation prosthetics and orthotics, Innovative medical consumables, Innovative implants, Diagnostic kits, Robotic technologies.

Project-based support for investments above TRY 50 million

Approved investments under the calls to be made within the scope of the Technology-Focused Industrial Initiative will benefit from Project-Based State Support for those amounting to TRY 50 million and above. Corporate income tax reduction of up to twice the investment amount or corporate income tax exemption for up to 10 years, customs duty exemption, VAT exemption, employer social security premium support for up to 10 years, qualified personnel support of up to 20 times the monthly gross minimum wage not exceeding 5 years, 10-year income tax withholding support, energy support for up to 50 per cent of energy consumption expenses for 10 years, interest or profit share support for investment credit for up to 10 years, grant support, capital contribution conditional on public offering or sale to investor within 10 years not exceeding 49 per cent of the investment amount. Allocation of free investment land for 49 years, allocation of free investment land for 5 years conditional on employment preservation, public procurement guarantee.

Some of the 421 supported products

Chemical: Polyethylene (low and high density), cetyl alcohol, crude glycerol, chlorine, arsenic, pure ammonia, potassium nitrate, acetone, acetic acid, acrylonitrile, melamine, fertilizer raw materials (urea, ammonium sulphate, nitrogen), various pesticides, DNA-based biological markers, PVC polyvinyl chloride, rubber varieties, Health: Vaccines, immunological products, heart valve, vitamin C, vitamin A, other hormones, other antibiotics, hemoglobin, antibiotic-containing medicines, alcoholic solutions, contact lenses, urinary catheter, catheter, blood pressure monitor, kidney machine, endoscope, dialysis sets, artificial body parts, hearing aids.

Ankara Development Agency also announced a TRY 15 million grant programme

The Ankara Development Agency, through its Medical Devices Financing Support Programme, will make available a fund of TRY 15 million for the development of product development, production and commercialization capacities. Projects by companies operating in sectors active in the medical devices sector in Ankara in the range of TRY 250,000 to TRY 2 million will be supported at 100 per cent. First applications will be accepted on 23 August and will continue until 23 September.