SCT hike is at the door, buying a vehicle is becoming impossible… Prof. Dr. Duran Bülbül: 'An urgent tax amnesty must be introduced'

Hazal Güven - 12punto.com.tr

The AKP has submitted a new economic package containing radical changes to the tax system to the Grand National Assembly of Turkey (TBMM). With the proposal, which heralds new hikes, notable regulations are targeted in many areas, from vehicle sales and foreign exchange transactions to the financial rights of public personnel and electric vehicles.

LOWEST SCT ON AUTOMOBILES IS RISING TO 80 PERCENT!

One of the most striking items in the package is the increase in the Special Consumption Tax (SCT) rates applied to diesel and gasoline automobiles. It is aimed to increase the SCT brackets, which are currently applied as 45, 50, 60, and 70 percent depending on the tax-free vehicle price, to at least 80 percent. In addition, the tax-free price threshold accepted as the SCT base will be raised from 184 thousand liras to 600 thousand liras, ensuring that a wider group of vehicles enters the high tax bracket.

Evaluating the package for 12punto, economist Prof. Dr. Duran Bülbül said, "Buying a house was already a dream for low-income earners, now buying a car has also become a dream."

Bülbül stated the following:

"Turkey has been experiencing a horizontal crisis for a long time. Along with this crisis, we see that a war economy is being seriously pursued in the international conjuncture as well. The Middle East has almost turned into a battlefield for imperialist states.

Furthermore, the Turkish people have been seriously dispossessed over the last 4-5 years. As they become dispossessed, they are returning to a communal family life. Since people can no longer sustain their lives in city centers, they are returning to living together again. Housing is a fundamental right for a humane life, and the state must provide individuals with an area where they can live humanely. We see that the Turkish-style family structures, which were shattered by capitalism, are reuniting with the current crises. This is another result. Political crises should have a political price. They should not have an economic price. But unfortunately, the public is paying the price for the waste and corruption incidents in our country through taxes.

'BUYING A CAR IS NOW A UTOPIA'

On one hand, inflation is constantly rising, and on the other, there is stagnation. Prices are constantly rising, and we see that taxes are being increased along with the rise in prices. This points to a diseased situation in the Turkish economy.

With the SCT increase that will come now, it is becoming a dream for the poor and low-income earners to buy a car. Buying a car is now becoming a utopia. The Turkish people are now being told that it is certain you cannot buy a house, but you will not be able to buy a car either. States generally increase taxes during periods of war economy. Usually, even if the war ends, taxes do not return to their previous levels. Public expenditures do not return to their previous levels either. There is almost a bruising of the citizens' sense of patriotism here."

'THE OPPOSITION APPEARS INEPT'

Criticizing the representatives of opposition parties as well as the government's economic policies, Bülbül continued his words as follows:

"The Turkish economy is shrinking more and more. Along with this contraction, prices are rising significantly. Along with this, inflation is rising. Foreign exchange prices and food prices are rising. This leads to impoverishment and contraction in the economy. It is obvious that this is not sustainable for a long time. It is the political will that will stop this. But we see a contradiction here as well. The opposition has no foresight, fortitude, or statement on this matter. In fact, it is the opposition that should manage the government correctly. It is the political discourse and ideological stance of the opposition. As far as we can see, the opposition has no stance regarding the economic crisis the country has fallen into. This allows the government to act more comfortably."

'AN URGENT TAX AMNESTY MUST BE INTRODUCED'

Arguing that a tax amnesty must be introduced for the Turkish economy to find relief, Bülbül said:

"Our companies are also heading towards serious bankruptcy and concordat. As a result of this, unemployment will arise. In such an environment, a war economy will be inevitable. Increasing taxes is not a solution. Because you increase taxes up to a point, but after a certain point, taxes do not increase; on the contrary, they try to decrease. The Turkish economy has passed the peak point in this regard. Either people quit their own businesses and do not pay this tax, or tax evasion begins to increase significantly. Along with this, an increase is seen in the informal economy. Tax smuggling is seen. Sometimes it shifts towards the process we call the underground economy. Here is the action that needs to be taken; the political power must immediately issue an amnesty law for the economy to breathe again. We see that the financial management is attacking all units seriously and has started audits, which even further suffocates people who are in difficulty. For this, the political power must urgently and immediately bring an amnesty law to the agenda for the workers and business people in the country. With this amnesty law, the economy will breathe again."

News Source : Hazal Güven