Tax Reductions for Halal-Certified Products
Tax reductions for halal-certified products. Turkey is positioning itself to claim a share of the 9 trillion lira halal food market. Food products were the first to carry the halal certificate; cosmetics and textiles will follow. Companies with halal-certified products will benefit from tax reductions.
By offering tax reductions on halal-certified products, Turkey aims to encourage companies to have their products certified halal. With 2 billion Muslim consumers driving roughly 9 trillion lira in halal food demand, other nations are paying close attention. Turkey is acting through its international agreements and through its own legal framework. Beyond food, preparations are now covering textiles and cosmetics, and the country plans to take a leading role through early moves across these expanding categories.
Tax reductions will be enabled through amendments to the international agreement covering the Standards and Metrology Institute for Islamic Countries, which is headquartered in Istanbul. Industry leaders stressed that halal food in particular has a large international market and that offering direct or indirect tax reductions to companies operating across member states, including Turkey, would be a sound decision that supports a leadership role in the sector.
A former head of the Organization of Islamic Cooperation noted that this market matters significantly to Turkey and plays a central role internationally. The halal food market was 8 trillion lira two years ago. By 2024 it is expected to reach 30 trillion lira. Competition for this market is intense between countries. Every participating country argues it has the best and most authentic halal food standard, since every country wants to capture the largest slice of the market.
