Turkey Introduces Bill to Increase Profit Taxes and Their Impact on Business
A bill proposing an increase in profit taxes has been presented to the Parliament of Turkey, sparking a wide-ranging discussion among business representatives and experts. According to the proposed changes, the profit tax rate will be raised from 20% to 25% for most companies, while banks, insurance organizations, and certain other businesses will see their tax rate increase from 25% to 30%.
The proposed changes have generated disagreement among entrepreneurs and economic experts. Opposition voices argue that the increase in profit taxes could have a negative impact on business activity and investment in the country. They believe that this move could deter potential investors and further burden businesses with tax obligations.
However, the government maintains the necessity of increasing profit taxes to boost state revenues and fund various programs and projects. They assert that the tax increase will be fair and contribute to a more equitable distribution of the tax burden.
Of particular interest is the proposal to reduce the tax rate for exporting companies. Under the new rules, these companies will benefit from a 5% reduction in the tax rate, lowering it from 19% to 20%. This proposal aims to support the export-oriented sector of the economy and stimulate its growth.
Business representatives, especially those engaged in exporting, welcome this proposal as a positive step. They argue that such a tax reduction will cut costs and enhance the competitiveness of companies in global markets.
The bill will be reviewed and discussed in Parliament in the near future. Following that, a final decision will be made regarding the increase in profit taxes and their rates for different sectors of the economy. In any case, the proposed changes in Turkey’s tax policy are generating significant debate and will have a substantial impact on the business environment and the country’s economy.