Buğra Gökçe addresses Treasury and Finance Minister Şimşek through a shared cartoon

While the tax package, which received heavy criticism even before it came into effect, continues to be the focus of reactions, the austerity measures taken by the government are further straining the citizens. Treasury and Finance Minister Mehmet Şimşek, who has only faced the public with price hikes and new taxes since the announcement that a comprehensive austerity movement would begin, is being heavily criticized.

One of the names who said that the steps taken are not concrete but are merely moves to get through the day was Istanbul Planning Agency President Buğra Gökçe. Gökçe took a swipe at Treasury and Finance Minister Şimşek without naming him through a cartoon he shared on his social media account.

Gökçe listed the wrong steps taken in the economy so far and said that the citizens should not be crushed any further.

Here is that post by Buğra Gökçe:

Tax amnesty - zoning amnesty: Isn't it time to abandon populist and rent-seeking policies?

The cost of zoning amnesties issued with a populist understanding has been heavy for Turkey. Those who brought the amnesty only thought about the rent they would obtain from it. While some were chasing rent, the earthquake resistance of our cities weakened, and our lives were lost. Tens of thousands of our people lost their lives in the February 6 earthquake alone, and according to the TBMM report, 36 thousand 453 buildings were destroyed at the moment of the earthquake.

The cost of tax amnesties issued with a populist understanding has also been heavy. Between 2002 and 2023, tax amnesties were issued exactly 11 times. In this period, 1 tax amnesty was issued approximately every 1.5 years. What was the result? While zero tax was collected from the currency-protected deposit scheme (KKM), taxes collected from mandatory expenses such as food, transportation, and clothing financed the budget. In the 2024 budget, the highest revenue item was VAT. In other words, the cost of tax amnesties was paid by workers, retirees, and the large segment of the public through the expenses they had to make to survive. While the rate of indirect taxes is at the 35 percent level in developed countries, it approached 70 percent in Turkey at the end of 2023. In other words, the low and middle-income segments of the public financed the public sector and capital owners.

We are paying the heavy costs of every step taken with a populist understanding as a nation, except for a small minority. As a result of the "interest is the cause, inflation is the result" policy, the Turkish Lira lost its reputation and value. Irreparable damage occurred in the economy. Foreign currency rose. Turkey's foreign exchange reserves were spent for next to nothing to suppress the rising foreign currency. While some got rich by buying cheap foreign currency, Turkey became impoverished. Due to KKM alone, the Central Bank recorded 833 billion TL in expenses in 2023 and closed the year with a loss of 818.2 billion liras. Due to KKM; the public burden that emerged with payments made from the Central Bank and the Budget and taxes not collected reached 1.2 trillion liras. Yet, the Minister of Finance of the time had claimed that KKM would have no burden on the budget. While a handful of people put this money in their wallets, the nation paid for this money by cutting back on their bread and water; by shrinking their portions.

In the March 2024 period, Turkey became the fourth country in the world with the highest inflation. It is not possible for those who drag the country into a hyperinflation environment to achieve success now in the fight against inflation by imposing more taxes on the public, impoverishing the public more, and putting the entire bill on the public again. Although labor, exchange rate, and fuel prices did not increase for a long time, monthly inflation never fell below 3 percent on a monthly basis in 2024. Those who say that if a raise is given to the minimum wage earner in the second six months, it will create an inflation spiral, have automated the SCT increases in fuel and alcoholic beverages according to the six-month PPI increase rate. With rising fuel prices and other tax hikes, inflation will increase, goods and services will become more expensive, and the citizen whose income does not increase will become even poorer.

The solution is not populism. It is the path of reason and science. Implementing the principle of the rule of law. Effective public oversight. Closing the black holes. Making the public procurement system transparent and competitive. Increasing the share of direct taxes in tax revenues through a tax reform based on tax justice, a fair tax system.

In Istanbul, 1 in every 10 people goes to bed hungry, and more than 1 million of our children in Turkey go to school hungry. According to the 2023 activity report of the Ministry of Family and Social Services, 4 million 989 thousand 456 households have been made dependent on social assistance. It is not possible for those who are concerned with managing poverty rather than ending it to find a solution to the cost of living and deepening poverty.

The solution is not in makeup, but in diagnosing the disease and applying the right treatment. The solution is to act with the awareness and sincerity that politics should be done not to gain rent for seat holders, but to serve the public.

News Source: 12punto