Economy to be the Parliament’s primary agenda

will be the primary agenda of Parliament LAWS ON THE ECONOMY when it is back in session on •ctober 1. Work is already underway to amend tax laws, notably the Tax Procedure Law. The preparation of a separate omnibus bill, including regulations on the economy, are ongoing. The Budget for the 2022 Fiscal Year will be submitted to the Parliament by •ctober 17.

According to AK Party sources, the Ministry of Treasury and Finance is also working on a legislative proposal consisting of around 55 items that includes tax regulations which are expected to favor of taxpayers. The legislative proposal prepared by the AK Party Parliamentary Group and the Ministry of Treasury and Finance will be submitted to the Parliament as soon as it is back in session. It will be on Parliament’s Planning and Budget Commission’s agenda in the first week of •ctober and is expected to be enacted before budget negotiations for 2022 begin.

The legislative proposal will mainly consist of titles falling into the Treasury and Finance Ministry’s area of responsibility scheduled in March. Reforms, which are mentioned in the economic reform package and planned for the first half of the year, have been implemented to a large extent to date. The Tax Procedure Law, which is included in the scope of the economic reform package, will be updated in the second half of the year by December 31, 2021 in order to promote voluntary compliance. Steps will also be taken towards tax exemption for small business owners included in the economic reform package. Small business owners whose turnover is below TRY 240,000 will be exempt from tax. Around 850,000 small business owners will benefit from this regulation.

The period of provisional tax returns will be changed. Declarations, which are submitted quarterly will now be submitted three times year while the periods of declaration submissions will be moved to one month earlier. Internship support for vocational training will be fully met by the government.

A 24/7 service for all taxpayers will be implemented in three phases by the Turkey Digital Tax •ffice, with a legal regulation expected in the in the first phase. The Development of the Digital Tax Audit system, shortening the period of examination, including the time of tax refund examination, are among the planned works requiring administrative and legal regulations to be completed by December 31, 2021.

TAX̞FREE AGRICULTURAL SUPPORT

The draft prepared by AK Party includes a tax amnesty for agricultural supports provided to farmers. Within the frame of the amendment of the Income Tax Law, taxes won’t be charged for fuel and fertilizer supports to be provided to farmers after the regulation becomes law. A group of farmers in Sanliurfa applied to the Council of State and requested to lift the 4% tax from the support provided by the government.