Yesterday, at the meeting held with Minister of Treasury and Finance Mr. Mehmet Şimşek and his delegation, the new tax reform was taken up. The presidents and representatives of civil society organizations operating in our country, foremost among them the Union of Chambers and Commodity Exchanges of Türkiye (TOBB), the Turkish Exporters Assembly (TİM) and the Foreign Economic Relations Board (DEİK), took part in this important meeting. As MÜSİAD, we attended the meeting in question and had the opportunity to convey our views.

Our President Mr. Mahmut Asmalı stated at the meeting that, although no draft text had reached them, MÜSİAD had carried out a preparatory study on the basis of the draft text circulating on various social media platforms, but that today it would be more appropriate to bring up and discuss a fundamental tax reform rather than to talk about the laws that are to be amended one by one.

Our President continued his remarks as follows: “Decisions to be taken as a result of changes made in such a short period of time may draw a social backlash. Because tax is not merely an economic obligation, it is at the same time a social contract. The correct understanding and implementation of this contract is a vital element affecting all segments of society.

The tax system is a reflection of the economic and social structure of society. The tendency to pay tax in societies rests not only on economic power, but also on cultural values. For many people, tax is the most concrete indicator of their relationship with the state. For this relationship to rest on solid foundations, justice and trust must be established.

The constant amendment of tax laws damages social trust. Continuous changes made to the tax system create uncertainty and distrust in taxpayers' relations with the state. The inability of taxpayers to plan their future because of constantly changing tax policies creates economic uncertainty. Instead of frequently amending tax laws, long-term and sustainable policies determined through social consensus should be established. This will both increase tax compliance and reinforce social trust,” he said.

Touching also on the necessity of a fundamental and sustainable tax reform, our President gave information about the "Panel on the Need for Tax Reform in Türkiye and Simplicity in Taxation", which MÜSİAD held towards this aim in İstanbul in December 2023 with the intensive participation of public and private sector representatives, and the "Symposium on Current Developments in Tax Jurisdiction", organized in May 2024 in cooperation with Yıldırım Beyazıt University and Pamukkale University. He stated that these events were organized in order to raise tax awareness and reinforce trust in taxation.

As MÜSİAD, we propose that a reform be carried out containing important changes such as simplifying the tax system, reducing the number of tax types, broadening the tax base and lowering tax rates. We state that steps such as limiting tax exceptions, deductions and exemptions, simplifying tax laws and digitalizing the tax administration should be taken swiftly.

We are of the opinion that, thanks to the simplification of the tax system, economic and social development can be supported, the burden on taxpayers will be reduced and tax revenues will be increased.

As MÜSİAD, we believe that we need reforms which take the social and cultural structure into account in order to make our tax system fairer and more effective, that our government should take into consideration not only economic data but also social dynamics when determining tax policies, and that only in this way will the fight against the informal economy succeed.

Reforms carried out through social consensus rather than through hastily taken decisions will give our country a fair, transparent and participatory tax system. This in turn will ensure economic stability and reinforce our social peace.


Respectfully announced to the public.