Physical Address
Indirizzo: Via Mario Greco 60, Buttigliera Alta, 10090, Torino, Italy
Türkiye’s ruling party has sent to Parliament a draft law on the economy that aims to increase budget revenues, a top lawmaker said on Friday, unveiling a bill that removes exemptions and introduces new fees to strengthen public finances without increasing taxes.
The draft law aims to expand non-tax revenue sources, eliminate outdated exemptions, combat informality and reinforce tax fairness, Abdullah Güler, Justice and Development Party’s (AK Party) parliamentary group chairman, told reporters in Ankara.
The proposal includes 36 articles and is expected to reach the parliamentary commission stage next week, Güler said.
The law will increase the net debt usage amount set by the budget law in order to maintain Treasury cash levels. The bill will also change some employer premium incentives.
Güler said the impact analysis of the proposed measures will be finalized during the committee deliberations next week, adding that the reforms were designed in part to address the financial consequences of devastating earthquakes that struck the southeastern region in early 2023.
The proposal foresees the employer premium incentive reduced from 4 percentage points to two points, except for the manufacturing sector.
Many licenses and operating permits that are currently exempt from charges will become subject to annual fees, including those for jewelry trading, second-hand vehicle and real estate brokerage, outpatient health facilities, aviation companies and precious metals firms.
Private hospitals and tourism businesses will also face annual licensing fees, according to the draft law, while rental income exemptions will be abolished for most taxpayers, except retirees and people with disabilities.
It says deduction of interest expenses on loans used to acquire non-residential properties will be discontinued. Property transfer penalties will rise sharply, with the fine for underreporting sale values increasing from 25% to 100% of the misreported amount.
Other key measures in the proposal:
- Employer social security contribution rates will increase by 1 percentage point.
- A new proportional notary fee of 0.2% (minimum TL 1,000) will be applied to the sale and transfer of vehicles, including both new and second-hand cars.
- The existing exemption for notary fees on used car transactions will be removed.
- The daily earnings cap used to calculate social security premiums will be raised from 7.5 times to nine times the minimum wage.
- The borrowable amount authorized under the 2025 Budget Law will be increased by TL 595 billion ($14.18 billion) to help finance earthquake-related expenditures and other fiscal needs.
- The temporary clause in the Check Law preventing pre-dated checks from being cashed before their due date will be extended until the end of 2028.
- The premium rate for borrowing (service debt) payments, excluding maternity leave, will rise from 32% to 45%, while the rate for reinstating previously frozen Bağ-Kur (self-employed) insurance periods will be set at 45%.
- The social security premium support for young entrepreneurs, currently valid for one year, will be terminated.
- The individual pension system (BES) contribution rate from the state, currently 30%, can be raised to as high as 50% or reduced to zero by presidential decree.
- Deliveries of goods and services related to the 2026 UEFA Europa League Final, 2027 UEFA Conference League Final and Euro 2032 tournaments will be exempt from value-added tax (VAT) for UEFA and foreign participants without a legal presence in Türkiye.
