Taxational incentive policies applied for improving the production of and investments to the products with high value added in Turkey

States apply to the taxes, as the basic revenue resource, in order to finance the public services, listed among their foundation purposes and duties and sustain their existence. They aim efficiency in the resource usage and to arise the welfare level with respect to the justice and economy in the income distribution in the framework of the growth targets through the treasury policies and taxation principles they build accordingly. It has importance to improve the taxation policies applied for increasing the incentives to the products which provide value added to the economy and contain technology with respect to sustain the economic and social development in the economic conditions of the twenty first century changing as a result of globalization. Because of this the finance policies try to ensure the continuity of the development with respect to the economy by presenting privileged applications such as incentives, exemptions and exceptions to certain sectors or investments through the finance policies, taxational arrangements which continue their development since the past. With this respect, thanks to the taxational incentives provided to the important sectors which have the capacity to produce technological products with high value added in the market conditions, it is targeted to direct the savings in the country to such investments. It is thought that the finance policies applied according to the development targets with respect to the economy are efficient for increasing the products which have high competitive power in the total production volume and which contain advance technology. Because of this, it is required that the taxational incentive laws, applied in the scope of various sectors or business lines serve the scientific and technologic industrialization policies. The technological and scientific areas of production are supported through taxational incentives across the world and these activities are sustained with the state and state supported private sector investments. It is observed that a lot of countries which has high or low development level support their special sectors intensely through taxational incentives and advantages and form the direction of their financial policies in this framework according to these purposes. The purposes of the financial policies applied in Turkey are also shaped in the framework of adaptation to the global economic conditions of the twenty first century and the direction of the taxational incentive policies are developed in the scope of supporting scientific and technological production areas. According to these purposes, it is targeted to increase the number of products with high value added in the production volume and to increase the competitive power of Turkey with respect to economy by incenting the sectors making technology intensive production through taxational incentives. The purpose of this study is to evaluate the compatibility of the incentive policies and taxational incentive laws, applied in Turkey with respect to develop the production of and investments to the products with high value added to the global economic competition conditions of the twenty first century. Keywords: Incentive, Value Added, Technology Intensive Production, Tax Incentive Policies