Companies must assume responsibility in tax matters
Türkiye Former Economy Minister Prof. considered that the Medium Term Program (PMP), which includes the next three-year economic objectives, lacked internal coherence and argued that the program was only a “goodwill document”. Dr. Işın Çelebi said that the PPM does not include any plan to solve the growing problem of income distribution. Turkey has four basic problems: high inflation, current account deficit, injustice in income distribution and compliance with international law, Altınbaş University Professor Prof. Dr. Işın Çelebi said: “The important thing is that the income distribution has seriously deteriorated and the standard of living of retirees, civil servants and workers has decreased significantly. While the richest 20 percent of the income distribution receives 56 percent of total income, the remaining 80 percent receive a 42 to 43 percent share. There is a tremendous imbalance. “This imbalance is increasing,” he said.
WHERE WILL TAXES BE CHARGED?
Noting that total tax revenue reached 2.4 trillion lira in 2022, while 4.3 trillion lira in tax revenue is expected this year, according to the MTP 7.4 trillion lira in tax revenue is expected for 2024, Çelebi said: “There is a tremendous increase of 72 percent of total tax revenue. However, it is not clear where to obtain it or its source. On the other hand, company profits in 2022 increased by an incredible 423 percent. It is necessary to increase income tax rates on corporate profits. “There is no suggestion of that,” he said.
SOCIAL JUSTICE MUST BE PROVIDED
“Ensuring social justice should be an indispensable goal,” Çelebi said, adding that the net subsistence levels of retirees, civil servants and employees should be increased to the level of the minimum wage. Çelebi said: “Fiscal policy should be the first priority and should be supported by monetary policy, legal reforms and social policies.”
The share of technology exports should increase to 15 percent.
Teacher.. Dr. Işın Çelebi continued: “Growth must be intertwined with technological development and efficiency. The total share of technology exports is 1 percent, and this rate should increase to 15 percent. The export-import coverage ratio is 70 percent and increases to 72 percent in the PMP. After 3 years, it should increase to 85-90 percent so that there is a decrease in the current account deficit. To do this, Eximbank needs to increase its capital five times. “There’s no goal about it.”
4 BIG PROBLEMS
one- INFLATION: Inflation rose again to 65 percent. It consists entirely of inefficiency, lack of production and uncertainty. On the other hand, company profits in 2022 increased by an incredible 423 percent. This situation needs to be examined.
2-CURRENT DEFICIT: The current account deficit problem has not been resolved; On the contrary, the problem is growing. When the exchange rate was under pressure in the last two years, imports soared. The current account deficit in the last 12 months reached $58.5 billion.
3- INCOME INJUSTICE: The problem of income distribution continues to increase. There doesn’t seem to be a solution to this in the OVP. The amount of Income Tax increases in 2024. However, it is not clear where to obtain it or its source.
4-LAW: There is not a single word in the OVP that international law will apply. This has an economic, social and legal dimension. It must be in integrity for the OVP to function.
The State owes 127 billion dollars to its citizens
exchange rate Pointing out that the Protected Deposit problem is growing, Prof. Dr. Işın Çelebi said: “There is currently public borrowing of around 127 billion dollars in exchange rate protected deposits. “This must be settled,” he said. However, Çelebi said the liquidation process would take time, saying: “During Özal’s last term, when I was Minister of Economy, accounts were opened for overseas workers. The liquidation process of these accounts at that time (TL Foreign Currency Convertible Deposit Accounts – DÇM) took a minimum of 2-3 years. “This shows us that KKM cannot be liquidated before 3 or 4 years,” he continued.