A written statement was made by the Independent Industrialists and Businessmen Association (MÜSİAD) regarding the law proposal put forward within the scope of the new tax regulation
The following points were highlighted in the statement:
Ensuring fairness in all types of taxes is essential. Unfortunately, however, while our current tax system constitutes many obstacles to the development of our economy and to savings, investment and employment, it remains insufficient in the fight against the informal economy and informal employment. For this reason, we attach considerable importance to the new tax draft. Nevertheless, some of the articles included in the law proposal must certainly be reconsidered.
In this context, we propose a six-bracket income tax which we believe will help increase the number of taxpayers and spread taxation across the base. Within this scope, the tax rate for incomes up to TRY 75 thousand should be %15; for TRY 150 thousand, TRY 11 thousand 250 for its first TRY 75 thousand and %20 for the excess. Again, in our proposal we envisage an income tax application of TRY 26 thousand 250 for the first TRY 150 thousand of TRY 225 thousand and %25 for the excess; TRY 45 thousand for the first TRY 225 thousand of TRY 300 thousand and %30 for the excess; TRY 67 thousand 500 for the first TRY 300 thousand of TRY 500 thousand and %35 for the excess. Finally, for TRY 500 thousand 1, an income tax of TRY 137 thousand 500 for its first TRY 500 thousand and %40 for the excess should be determined.
Likewise, the accommodation tax included in the draft law should be applied as %1. Indeed, should it be turned into a fixed amount, this situation will give rise to an unfair application in terms of the rate.
Although the cases listed in Articles 11, 12, 13, 14 and 15 of the draft law were framed with the aim of reducing the tax base, they carry a character that increases the tax base of seller companies. Our proposal at this point is that these articles be removed entirely and that, in addition to the article currently in force, the annual MTV paid for vehicles be taken into account as an expense. For defining the taxes paid as a non-deductible expense will constitute an obstacle to ensuring tax justice, and this application will also be reflected negatively on the automotive sector and the supplier industry.
In addition, because of the limitations introduced regarding the deductible portions from taxable earnings of the rental fees paid by commercial enterprises for rented vehicles and of the SCT and VAT appearing on the invoice in purchases of brand-new vehicles, the tax advantage to be obtained through luxury vehicle rental and purchase is eliminated.
Article 31 of the Law Proposal on the Digital Services Tax Law and on Amendments to Certain Other Laws carries a character that increases the cost of acquiring real estate. With the Valuable Residence Tax introduced by Articles 32-40, persons who own far more residences in number, although their value remains below the amounts determined by the proposal, remain outside the scope.
As MÜSİAD, we support the other articles in the draft law aimed at reconciliation, which we believe will offer a fairer system by increasing the number of taxpayers, ensuring that everyone pays tax according to their income and spreading taxation across the base.