We will feel the elevations in our bones.
Hülya K. ORUÇOĞLU
TürkiyeWhile the government welcomed each new day under the shadow of high inflation, the real pause in terms of fiscal measures was left until after local elections in March 2024. Low-income people will bear the brunt of a most serious economic crisis after the elections. The Tax Expert Dr. carries out evaluations on economic policies. Ozan Bingöl stated that they will continue with high indirect tax increases until the local elections and said: “The real strict tax measures will be applied after the elections. It will hurt us a lot, we will feel the price increase in our bones. “The biggest fiscal measure will be restrictions on employee salary increases,” he said. Bingöl said: “I would say that the hole in the budget is big, but there is no budget left,” and said: “According to the Medium Term Program (PMP), the tax that is intended to be collected in the next four years is 32, 5 trillion lire, the projected budget deficit is 7.9 trillion lira and the interest expense to be paid is 6 trillion lira.” “We will pay more taxes, they will spend more, but to whom, how and to what extent,” he stated.
MTP, THE STRONGEST SIGNAL
Noting that there may be increases in the Banking and Insurance Transaction Tax, fees, additional real estate and some items of the Special Consumption Tax (SCT) on consumer loans in the coming period, Bingöl said: “Because, according to the MTP, the budget It is expected that the deficit at the end of this year will be approximately 1.6 trillion lire. Such a large open figure; “It’s the strongest sign that tax increases will continue,” he said. Regarding the fact that the requested salary adjustment has not been made despite the promises made to retirees, Bingöl said: “Promises cannot be made without checking whether the increase to be made has a counterpart in the budget. “This means ignoring budgetary law and Parliament,” he said.
Fuel oil became a tax and flowed into the Treasury coffers
in fuel oil Ozan Bingöl stated that the tax increase reached 700 percent in two years: “Diesel was a tax and it flowed into the Treasury coffers. In the first eight months of this year, 75,921 million liras were collected from the SCT in fuel. In 2022 we reach the amount of SCT collected from fuels and natural gas in the first eight months. The next few days are also full of new rises. “Since the VAT collected on the amount of fuel, including SCT, corresponds to more than 35 billion lira, the tax we paid on fuel in eight months exceeded 110 billion lira,” he said.
Be prepared for an increase of at least 55 percent in taxes and fees.
“September “And even if inflation reaches ‘0’ in October, the Revaluation Rate (Revaluation Rate) for 2023 will be above 55 percent,” Bingöl said, adding: “This means an increase in taxes, fees and penalties of more than 55 percent in 2024, with the most optimistic estimate.” The increase in taxes and penalties with a high YDO will also result in carrying over part of the high inflation from 2023 to 2024. For example, in 2022, the fee for a passport of three years or more was 1,478.30 TL, and in 2023 increased to 4,943.50 TL. “According to the most optimistic estimate, in 2024 it will be approximately 7,645 lira,” he said.
When it’s time to retire, they remember to do the math.
Social Ozan Bingöl recalled that natural gas is supplied free of charge for a month without any aid: “The cost is 40 billion lire. They implemented the Protected Exchange Rate Deposit application without any legal basis and without a single cent of allocation in the budget. By 2022 alone the cost will exceed 200 billion Turkish liras. This year, they handed the burden of this to the Central Bank and imposed a data block. The possible burden will be around one billion lire. “When you see the expenses that result in non-accountable expenses, it is understood that the government thinks about doing calculations and books, promising tax-free mobile phones to students and giving raises to retirees,” he said.
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.