Türkiye to hike corporate, motor vehicle taxes

Türkiye to hike corporate, motor vehicle taxes
Date: 6.7.2023 10:00

The bag bill containing the raise proposal, which the civil servants had been waiting for a long time, was presented to the Presidency of the Turkish Grand National Assembly.

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With the proposal, civil servants will receive an increase of 8 thousand 77 liras, in addition to a 17.55 percent increase, and the lowest civil servant salary will be 22,017 liras. In addition to the increase in the proposal, taxes were also increased.
 
While the Motor Vehicles Tax was doubled for one time only for 2023, the general corporate tax rate was increased from 20 percent to 25 percent.
 
The expected raise for retirees was not included in your bag.
 
The law proposal, which the civil servants were eagerly waiting for, was presented to the Turkish Grand National Assembly (TBMM).
 
The bag bill submitted to the Presidency of the Grand National Assembly of Turkey with the signature of AKP deputies included topics such as the increase in civil servants' salary, corporate tax, MTV regulation, and the refund of collected Covid-19 fines.
 
AKP Group President Abdullah Güler stated that they submitted the law proposal, which includes increasing the minimum civil servant salary to 22 thousand liras, to the Speaker of the Assembly.
 
"In addition to the increase in the annual wages of all public officials, including the inflation difference, we foresee a net increase of 8 thousand 77 liras. The lowest civil servant salary will be increased to 22 thousand 17 liras. The July increase rate reaches 86 percent with this form. The cumulative increase, on the other hand, will provide an increase of 142 percent. The average civil servant salary will be increased to 25 thousand 15 liras. The July increase rate corresponds to an average of 74 percent. We will have increased the cumulative rate of 129 percent," he said.
 
Emphasizing that there is no work for retirees in the said regulation, Güler said that they will announce the increase in civil servants' salary in the future.
 

“IT HAS BEEN ESSENTIAL TO TAKE MEASURE”

 
Güler stated that new regulations will be made in the bill to eliminate the damage caused by the earthquake.
 
"We can examine the general costs of the earthquake under two headings. Replanning damaged cities is the cost of infrastructure. The second is the cost of employment and tax loss. It is obvious that our country's budget clearly needs additional financing and that it is necessary to take some economic measures to meet the additional financing. We are making new regulations in corporate tax and MTV. We foresee changes to remove some exceptions. We foresee an authorization regulation for updating the fixed tax amounts. For additional financing and for the treasury reserve, we plan to implement the net debt increase in the central budget law for 2023," he added.
 

BOTH HIKES AND TAXES COME OUT THE BAG

 
In the bag offer, additional taxes attracted attention. Motor Vehicles Tax has been doubled to be valid for 2023.
 
The general corporate tax rate determined for 2023 has been increased from 20 percent to 25 percent.
 
This rate; The corporate tax rate of financial leasing, factoring, electronic payment companies, capital market institutions and insurance companies was increased from 25 percent to 30 percent.
 
Along with the bag regulation, an article that envisages the automatic increase of the fixed tax amounts at the 6-month D-PPI rate will be included in the SCT list no. I, which includes fuel and natural gas.

YEREL HABERLER

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