TESK President Bendevi Palandöken stated that tradespeople are struggling with economic difficulties and that the burden of rental withholding tax is further exacerbating this situation. Palandöken noted that tradespeople are becoming unable to conduct business and that the purchasing power of citizens has declined.
Palandöken said that the lifespan of a small business is generally between 3 and 3.5 years, and that most businesses close at the end of this period. 'Issues such as unfair competition, the inability of the workplace to generate business, and a lack of feasibility are straining tradespeople. When the burden of rental withholding tax is added on top of this, it becomes almost impossible for them to survive,' he said.
DEMAND TO LOWER THE WITHHOLDING TAX RATE
Recalling that the reduction of the withholding tax rate from 25 percent to 10 percent during the pandemic provided relief to tradespeople, Palandöken argued that a similar step should be taken. 'Economic difficulties are deepening, rents are high, and purchasing power is falling. It would provide great relief if our Minister of Finance were to lower the withholding tax rate to at least 10 percent,' he said.
Palandöken stated that the complete abolition of the rental withholding tax is the definitive solution. 'Taxes are already paid on income subject to income tax. Basic services such as electricity, water, and natural gas also need to be cheaper for workplaces,' he concluded.
News Source: 12punto
