Cement, Glass, Ceramics and Soil Products Exporters' Association (CCSIB) Chairman of the Board Erdem Cenesiz said that exporters face the risk of losing their competitiveness against EU companies and their export markets around the world.
Erdem Cenesiz, Chairman of the Board of Directors of the Cement, Glass, Ceramics and Soil Products Exporters' Association (CCSIB), which includes the ceramic, glass and cement industries and is the only and coordinating exporter association with over 2,000 members, made a statement about the natural gas hike of 50 percent.
He said, "In this period, where the working capital needs of the industrialists are increasing, measures should be taken to address the possible risks of exports by taking measures such as fixed-price natural gas sales with long-term contracts, reducing the maturity and VAT in natural gas payments, and increasing export credit limits.”
“Energy costs have reached a level that will exceed our competitors in the EU.”
Cenesiz said, “We know that we are going through a difficult period due to the rapid increase in energy prices, fluctuations in exchange rates and geopolitical tensions. As exporting companies, we are working hard to add value to our country despite all these difficulties. However, the energy costs, which started to create a serious burden on the exporter, reached a level that will exceed our competitors in the EU. This picture puts us at risk of losing our competitiveness against EU companies and our hard-won export markets around the world. We are concerned about these risks at a time when we are starting to surpass rival countries in exports.”
“Long-term fixed price contract, temporary deferred payment and VAT discount can be made”
Erdem Cenesiz who made suggestions so that the producers would not lose their power in the face of increasing costs, said; “The European Commission proposes to reduce the taxes on gas and electricity and to give direct incentives to businesses in order to reduce the energy costs of all member states, and develops support policies related to this. Accordingly, our competitors in the EU can buy gas at low prices with long-term contracts. For example, 0.5 Euro per cubic meter of gas used in industry in Italy and Spain. With this last increase, we have exceeded this price. If the increases are compulsory, deferred payments can be applied in both natural gas and electricity, at least temporarily, in our country. When we look at the EU again, we see that gas is not taxed in mineralogical sectors such as ceramics. VAT deductions can be made with us, albeit temporarily. In addition, Eximbank's increase in export credit limits in line with the increase in energy costs will also support our exporters' need for an increase in working capital.”