Ruling AKP introduces bill on new economic measures

Ruling AKP introduces bill on new economic measures

Ruling AKP introduces bill on new economic measures

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The ruling Justice and Development Party (AKP) has introduced a new bill to parliament designed to weather the economic fallout from the coronavirus outbreak, offering certain tax concessions to businesses and extending the scope of financial aid to employees.

“Under the 15-article bill, workers who are on unpaid leave and not entitled to short-time working payments and those who were nor qualified for unemployment benefit when sacked, will be able to receive a monthly cash financial support of 1,177 Turkish Liras [some $170],” said Mehmet Muş, AKP group deputy chairman.

He also noted that the bill includes a provision which paves the way for quicken the process for short-term working payment applications

“The bill also prevents the cancellation of labor contracts for three months,” Muş added.

Financial support for the elderly and disabled will continue without any income or disability conditions for three months and the Family, Labor and Social Services Ministry will coordinate these efforts, according to the party official.

Another provision in the proposed bill foresees the deferral of social security premium payments for three months and financial support for municipalities’ public transport services.

University graduates’ credit debts to the general directorate of credit and dormitories agency will also be postponed for three months.

Companies’ dividend payments will be restricted to 25 percent of their profits from 2019 until end-September, Muş added.

The AKP official added that the proposed bill stipulates that the debts of households and businesses - which suspended or halted operations - to municipalities stemming from water utility bills could be deferred for three months.

Under the bill, the Treasury and Finance Ministry will be authorized to transfer funds to public medical schools and dentistry faculties, Muş also said.

On March 18, President Recep Tayyip Erdoğan announced Economic Stability Shield measures to counter the economic effects of the coronavirus pandemic on the communities.

The relief package of 100 billion liras ($15.4 billion), including debt payment delays and tax cuts across various sectors, aims to limit the economic fallout from the coronavirus pandemic.

Turkey, economy,