Proposed solutions for fair taxation

With the goal of establishing a widespread, low-rate, and fair tax system, tax rates should be reduced in the long term. Exemptions should be minimized to increase effective tax rates. It has been observed that lowering the corporate tax rate increases tax revenue.

The tax base should be broadened, and the goal should be to reduce the size of the informal economy by rapidly bringing it into the formal sector. Through a program parallel to reductions in tax and social security contribution rates, informality should be reduced to the averages of developed countries. While it is quite difficult to measure the tax revenue that will increase as the informal economy is brought into the formal sector, there is no doubt that tax revenue will increase significantly.

To this end, in addition to general and specific solution proposals, the following should also be implemented:

Effective measures to expand the documentation system should be put into practice.

To reduce the use of cash in the economy, purchases made by final consumers using registered payment methods should be encouraged.

The links between payments made through banks and tax declarations should be monitored.

Tax penalties must be deterrent.

Tax Policies Must Always Be Predictable

The principle of legal certainty must be observed in tax regulations. Tax laws should be reviewed, and in accordance with the principle of "no taxation without representation," the collected taxes must be accounted for.

It should become a legal requirement to regularly inform the public about where collected tax revenues are spent. The public should be informed in detail about taxes that are waived through tax incentives, exemptions, exceptions, or deductions, as well as the public benefit provided in return.

Local Governments Should Receive a Larger Share of Tax Revenues

In line with the understanding of increasing the effectiveness and responsibility of local governments, an approach should be implemented that gradually transfers the authority to collect taxes related to local services to local administrations and transfers a larger share of total tax revenues to municipalities.

"Tax amnesty" practices, which encourage tax evasion, damage the culture of tax compliance, increase losses, and lead to unfair competition and earnings, should not be resorted to except during periods of economic crisis, and legal regulations should be enacted to this effect.