Turkish government submits omnibus bill on unemployment pay, pensions, taxes
The ruling Justice and Development Party (AKP) has submitted a 71-article omnibus bill, which introduces regulations over a wide ranging issues such as unemployment pay entitlement, old-age pensions, urban transformation, special consumption tax on certain items and house rents, to the office of the speaker of parliament.
The bill will be sent to the budget and planning commission for further discussions and then be discussed at the general assembly of parliament.
The bill sets the lower limit for the old-age pensions at 1,000 Turkish Liras ($194) while it makes easier for people to be entitled to unemployment pay by scrapping the current condition which requires that 120 days’ premium prior to unemployment must be paid uninterruptedly.
Another article in the bill regulates the rent adjustments. According to the proposal, in lease contracts, the rent increase will be linked to consumer price inflation whereas under the existing rules the increase is indexed to producer price inflation.
The bill also foresees the establishment of a financial stability and development committee that is designed to manage systemic risks in order to support economic growth and maintain market confidence.
The proposed legislation also includes articles that encourage investments in the manufacturing industry. Accordingly, the incentives granted to this industry will be extended into 2019 while the president will be able to extend the duration of those incentives for up to five years.
The Bank of Provinces (İller Bankası) will use 51 percent of its profit to support and finance urban transformation projects of municipalies, the bill also proposes.