Prof. Dr. Duran Bülbül assesses: The Treasury is pushing tradespeople not toward commerce, but toward the informal and criminal economy

Finance Professor Dr. Duran Bülbül assessed the current state of the national economy for 12punto with the following remarks:

On one side there is inflation, on the other high interest rates, a rising exchange rate, and a deepening economic crisis—tradespeople, contractors, civil servants, and retirees are desperate. Meanwhile, where the economic contraction implemented by the Ministry of Treasury and Finance is not enough, it has increased the seizure and foreclosure of assets belonging to tradespeople, contractors, merchants, and factory owners.

Furthermore, tax offices are photographing the vehicles and business equipment that tradespeople use in their trade, documenting these records, and issuing seizure and arrest warrants. These processes implemented by tax offices send the following message: “Do not trade anymore. Do not produce anymore.” Yet, this practice pushes businesses toward informal activities, the shadow economy, and even toward shutting down their operations.

Due to the deficit created by treasury revenues in a contracting economy, liens are being placed on all of a tradesperson's machinery, real estate, movable assets, and vehicles. In addition to this, tax offices are having the vehicles and goods that tradespeople use for trade brought in front of the office to be photographed; they are formalizing these records and issuing arrest warrants to place liens on them. Tradespeople are becoming unable to transport the goods they produce to construction sites, their factories, or the buyers who ordered them. Is a tradesperson who cannot actually use the goods under lien expected to “carry them on their back”? This is impossible.

All of these actions are forcing tradespeople and business owners into the informal and criminal economy. Yet, while there is an opportunity for a serious and urgent tax restructuring/amnesty, these processes are being delayed; the tradespeople's right to life and trade is being taken away. These arbitrary practices, which do not befit a democratic state of law, are not legal but a form of pressure and intimidation.

The judicial process must immediately be brought into compliance with the norms of a state of law; the rule of law must be upheld. The Ministry of Treasury and Finance and tax offices must abandon arbitrary practices, and the collateral offered by tradespeople must be evaluated fairly. In accepted restructurings, installments that exceed the tradesperson's ability to pay and cannot be met should not be imposed. Due to fiscal pressure, businesses have become unable to pay their loans and have fallen into a state where they cannot conduct trade.

In conclusion; the liens placed on the assets, properties, and vehicles of tradespeople must be lifted immediately; arrest warrants must be canceled. Otherwise, production and trade will come to a halt, the shift toward the informal economy will increase, and broad segments of society will face severe grievances.

News Source: 12punto