Corporate tax to be raised to 25 percent this year

Corporate tax to be raised to 25 percent this year

Hacer Boyacıoğlu - ANKARA
Corporate tax to be raised to 25 percent this year

A group of parliamentarians from the ruling Justice and Development Party (AKP) submitted a draft law to the parliament on April 2 that proposes raising the corporate tax in Turkey from current 20 percent to 25 percent this year and then to 23 percent next year.

A parliamentary commission is expected to conduct a debate on the draft bill this week and swiftly submit it to the general assembly.

It also envisages support for restaurant and cafe employees in April and May following the imposition of new restrictions aimed at curbing the spread of the coronavirus.

According to the draft bill, insurance premiums of those workers, which are normally paid by employees and employers, will be paid by the Unemployment Insurance Fund for two months.

Hospitality sector employees will be paid a monthly allowance of 1,500 Turkish Liras ($184) - slightly more than half of the minimum wage - if they are forced to take unpaid leave.

Meanwhile, Treasury and Finance Minister Lütfi Elvan has told ambassadors of the European Union countries in Ankara that Turkey is committed to implementing economic reforms.

At a meeting held via video link on April 2, Elvan briefed representatives of EU member states about the economic reforms announced by President Recep Tayyip Erdoğan on March 12.

He also enlightened them on the macroeconomic and structural policies that constitute the main body of economic reforms.

“After President Erdoğan announced the economic reforms, we received requests for meetings from both investors and representatives of foreign missions on the content of the reforms,” he said.

Additionally, Turkey’s policies in the areas of the fiscal discipline of public finance, fighting inflation, strengthening the financial sector, reducing the current account deficit, and encouraging employment were discussed, according to Elvan.

It was emphasized that macroeconomic stability is Turkey’s main priority, he noted.

Elvan said the meetings on Turkey’s economic reforms will continue in the coming days.

Economy, COVID-19,