Turkey's United Brands Association (BMD) Chairman Sinan Öncel has pointed out that there is now an ongoing work to reanimate the shopping districts that have suffered from failed businesses. According to the news from Daily Sabah, the stores on busy shopping districts were closed as a result of high taxes, and this is why BMD has opted to act.
With the leaderahip of "Alkaş Association Executive Board Chairman" Avi Alkaş, the first step will be to meet with closed store owners in Abdi İpekçi Street of Nişantaşı district in Istanbul and get them to reach some sort of an agreement with various brand representatives.
The Problem Must Be Solved
BMD Chairman Öncel has stated that some property owners tend to delay renting their property in order to attain the maximum amount of rental value (as renting prices are always on the rise), but this in turn hurts all the stores on a commercial street. Öncel underlined that they are in contact with the local authorities in terms of preventing this kind of a drawback. He has suggested that a withholding tax could be implemented for owners who hold on to their property for more than 3 months.
After prices went up in commercial streets following the Urban Transformation Project, many businesses declared bankrupcy because of extremely high renting prices; such as $30,000 – $40,000 for a store of 100 square meters – the same goes also for Bağdat and İstiklal streets.