With an article added to the bag law, which includes the salary increase of civil servants in the Parliament and many tax hikes in the previous night, an additional 5 percent increase was made for retirees, and a 25 percent increase was made instead of the pronounced 45's increase.
In this case, the retiree has lagged behind even the price hikes made in the last three days, let alone improving it.
In addition to the hikes to be made in the second half of the year for civil servants and pensioners, the bag bill that brings additional tax to the Motor Vehicles Tax with an increase in some taxes was accepted in the Plan and Budget Committee of the Grand National Assembly of Turkey.
With the proposal, the lowest civil servant salary will be increased to 22 thousand 17 liras, while pensions will be increased by 25 percent.
Those who retire with the EYT arrangement will not be able to benefit from the 25% increase. With the proposal, while the Corporate Tax rates are increased, the Motor Vehicles Tax is doubled for this year.
The proposal also increases the borrowing authority given to the President.
The law proposal, which was announced by the AKP as "the good news of a raise for civil servants", but which brought an increase in some taxes and additional taxes, was accepted by the Parliamentary Plan and Budget Committee with the votes of the AKP and MHP deputies.
During the negotiations of the proposal, the AKP proposed a 25 percent increase in pensions. The proposal was added as a new item to the proposal.
Thus, the increase in the salaries of civil servants, Social Insurance Institution (SGK) and Insuranced Self-employed Institution (Bağ-Kur) retirees for the second half of the year was determined as 25 percent.
However, those who retired under the Retirement Age Victims (EYT) regulation were excluded from the raise.
In addition to the hikes to be made in civil servants and pensions, new taxes were also introduced in order to cover earthquake damages. An additional tax was added to the Motor Vehicles Tax.
MTV has been doubled for this year. Additional Motor Vehicle Tax will be recorded as revenue in the general budget and local governments will not receive a share from it.
According to the impact analysis of the proposal, an additional income of 30 billion liras is targeted for the Treasury from the additional motor vehicle tax.
AUTHORITY TO BORROW UP TO HALF OF THE BUDGET TO THE PRESIDENT
With the proposal, the borrowing limit given to public institutions at the beginning of the budget is also increased. The president and ministers are given the authority to increase the net borrowing amount up to three times.
At the beginning of 2023, an expenditure of 4.4 trillion liras was foreseen and the President was given the authority to borrow 660.9 billion liras.
With this proposal, this authority reached almost half of the 2023 expenditure budget and it was envisaged that the President would be given the authority to borrow 2 trillion 181 billion liras.
In the impact analysis of the cost of the increase of 8 thousand 77 liras to the civil servants, it was estimated that the cost to the Central Government budget would be 177 billion liras.
In addition, minimum wage support to employers was also included in the proposal. The minimum wage support given to employers and covered by Unemployment Insurance will be increased to 500 TL. The cost of this support will be 19 billion liras.
The President will also be given the authority to add appropriations to the relevant administration budgets, for reasons such as increasing the pension to 7 thousand 500 liras, the holiday bonus to 2 thousand liras, and giving minimum wage premium incentives to the employer. It was informed that the amount of this authorization was 794.1 billion liras.
SCT ON FUEL CAN INCREASED UP TO 5 TIMES
The authority given to the President in the amount of SCT for fuel, tobacco and alcoholic beverages was increased up to 5 times, up to half. The fixed SCT amounts related to fuel will be evaluated according to the PPI indices.
The proposal also includes an increase in corporate tax. The corporate tax rate, which is 20 percent, is increased to 25 percent in order to compensate for the economic loss caused by the earthquake.
According to the proposal, corporate tax is also increased from 25 percent to 30 percent for financial leasing, factoring, electronic payment companies, capital market institutions and insurance companies. The effect of this increase in 2023 is expected to be 80 billion liras, and the annual effect is expected to be 119.9 billion liras.