The Republican People's Party (CHP) filed a lawsuit with the Constitutional Court requesting the annulment of certain provisions of Law No. 7421 on Amendments to the Tax Procedure Law and Certain Other Laws.
In the petition, it was argued that the rule in question rendered the Central Bank's authority and duty to ensure price stability, as well as its power to determine the monetary policy tools to be applied in this context, meaningless. It was further stated that by eliminating the independence of the Central Bank, the rule led to uncertainty and confusion regarding authority, and was therefore unconstitutional.
The Constitutional Court rejected the request for the annulment of the regulation.
In the reasoning of the Constitutional Court's decision, published in the Official Gazette, it was noted that the rule in question regulates the establishment, members, duties, powers, and operations of the Price Stability Committee, and that it was established to contribute to the permanent establishment and maintenance of price stability.
The following was noted in the reasoning:
"Considering that the aforementioned matters are regulated clearly and explicitly without leaving any room for doubt, it cannot be said that the rules are ambiguous. It is understood that the rules aim to establish an administrative unit, determine its structure, duties, and powers, and regulate the operation of its secretariat for the purposes of developing various proposals for ensuring price stability and taking and implementing measures against factors that threaten price stability. In this respect, it cannot be said that the rules pursue any purpose other than the public interest."
The reasoning further stated that, given there is no constitutional provision mandating a specific tool or method for ensuring price stability, the task assigned to the committee to contribute to the permanent establishment and maintenance of price stability falls within the discretionary power of the legislature, within the framework of the obligations set forth in Article 167 of the Constitution.
News Source: AA
