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Finance ministry admits no taxes paid by some big businesses, vows to change policy

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The Turkish Finance Ministry has admitted that certain large corporations have paid no taxes, a revelation that has sparked public outrage amid a deepening economic crisis.

The ministry has promised to implement policy changes to ensure these businesses contribute their fair share in the future.

In a statement on Sunday, the ministry confirmed that some construction firms, despite securing lucrative government contracts worth billions of dollars, have not paid any taxes. The ministry attributed this to existing tax exemptions and deductions, which it now plans to eliminate.

The ministry stated that companies benefiting from these exemptions will be subject to a minimum 10 percent corporate tax on their earnings. “These companies will now pay a minimum tax rate on their profits,” the ministry said.

The admission follows growing public discontent over the tax burden on ordinary citizens, while wealthy corporations seemingly evade their obligations. Mehmet Emin Ekmen of the opposition Democracy and Progress Party (DEVA) criticized the ministry’s announcement, saying, “They admit they haven’t been collecting taxes and now claim they will start.”

Economist Serkan Özcan echoed this sentiment, calling the statement an admission of the government’s failure to ensure tax equity. “This is a confession of inadequacy in tax fairness,” he said. Economist Ozan Bingöl highlighted the rollback of policies that previously provided transparency, such as the removal of mandatory tax display certificates in 2011. “Displaying tax certificates ensured a degree of self-regulation,” he tweeted.

The Finance Ministry’s statement detailed that only 27 percent of 2,815 major taxpayers have undergone tax audits. The ministry pledged to increase the frequency of these audits and to scrutinize companies that consistently report losses, with audits already underway for 735 high-risk taxpayers.

The announcement has intensified the debate over tax equity in Turkey. Allegations have surfaced that prominent corporations, including Turkcell and Türk Telekom, have avoided taxes for years while imposing multiple fees on consumers. These include a 400 lira initial setup fee, annual license fees and various taxes on communications services.

Finance Minister Mehmet Şimşek defended the new tax bill passed by parliament, stating it aims to enhance tax fairness and combat the shadow economy without burdening citizens. “Our goal is to collect more taxes from those who earn more and less from those who earn less,” he said.

Opposition voices remain skeptical. Main opposition Republican People’s Party (CHP) MP Aşkın Genç criticized the transfer of authority to set insurance premium rates to the president, calling it unconstitutional. “The legislative process must be transparent and preserve the rights of both employers and employees,” he said.

The ministry’s admission has put a spotlight on the tax practices of Turkey’s largest corporations, including construction and telecom giants. Companies like Taş Yapı, Yapı & Yapı and Trendyol have been named among those that have paid little to no taxes despite substantial earnings from government contracts and other operations.

The revelations have fueled public frustration, with many questioning why they are paying taxes while powerful corporations are not. The DEVA Party’s Mustafa Yeneroğlu remarked, “Seeing privileged companies not paying taxes makes people ask, ‘Why should I pay taxes?’”

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