Tax Bill Sparks Fierce Showdown in Parliament

The Turkish Grand National Assembly completed its general debate on a sweeping tax reform bill that amends numerous tax laws and introduces changes to several existing acts, including Decree Law No. 631. The proposal includes measures affecting fees, social security premiums, exemptions, and compliance mechanisms, prompting an intense round of political disagreement among parties.

The bill aims to broaden the tax base, increase government revenue, revise multiple exemptions, and enhance enforcement. However, with each party approaching the changes from a different economic and ideological perspective, the discussion quickly evolved into a broader examination of what “tax fairness” means in today’s economy.

MHP: “The Fee System Needs a Complete Overhaul”

Taking the floor on behalf of the Nationalist Movement Party (MHP), Deputy Chair and Konya MP Mustafa Kalaycı called for a complete restructuring of the Fees Law, arguing that the system must be redesigned with fairness at its core.

Kalaycı explained that the bill increases the Social Security Institution (SGK) premium rate by 1 percentage point for all insured workers and raises the upper limit of earnings subject to premiums from 7.5 times the minimum wage to 9 times the minimum wage. He added:

“Borrowing premium rates, except for maternity, are being raised from 32% to 45%, and the revival premium rate for suspended Bağ-Kur periods rises from 34.75% to 45%. Imposing a 45% rate instead of the standard premium rate on tradespeople whose Bağ-Kur coverage was suspended will significantly increase their debt burden. Considering that their coverage was suspended because they were unable to pay premiums in the first place, we believe the revival rate must be revised and eased.”

Kalaycı criticized the constant amendments to the tax code, arguing that frequent changes undermine trust and transparency. He emphasized:

“The main purpose of tax policy is to provide revenue to the state while distributing the tax burden fairly across different segments of society. Our tax system has become excessively complex and unpredictable. Continuous amendments make compliance difficult and erode trust, pushing economic activity into informality. We need a tax reform that is simple, clear, understandable, and equitable.”

DEM Party: “This Bill Shifts the Burden to Workers and the Poor”

DEM Party Diyarbakır MP Adalet Kaya argued that the proposal deepens inequality within the tax system. She described the bill as a significant disappointment, saying:

“This bill is far from tax justice. Once again, the burden is placed on retirees, low-income households, and the poor. The government plans to obtain roughly 300 billion lira, around 7 to 8 billion dollars, but neither the justification nor the commission meetings explain where this revenue will be spent. For true tax justice, we must introduce taxes on windfall profits, crypto assets, and wealth.”

Kaya stressed that without structural reforms, revenue measures alone cannot address systemic disparities.

DEM Party: “Reform Is Promised Every Time — But Never Delivered”

DEM Party Antalya MP Hakkı Saruhan Oluç said every new tax proposal raises hopes of a genuine reform, only to fall short:

“Each time a tax bill arrives, we ask whether there will finally be steps toward tax reform or toward correcting tax injustice. But every time, the same result: no reform on the agenda, no measures to fix inequality. These tax packages do not solve problems — they repeat them.”

Oluç argued that the proposal lacks the capacity to address any of the deeper structural issues it claims to target.

CHP: “A Desperate Search for Revenue Shows the System Is Failing”

CHP İzmir MP Ümit Özlale criticized the timing and content of the bill, saying that discussing a major revenue-raising package so late in the year signals a troubling fiscal outlook:

“A tax package aimed at generating extra revenue for 2025, being debated in November, shows just how bleak and hopeless fiscal policy has become. The package worsens an already unfair tax structure. Out of 46 pages of exemptions and exceptions, what do we find? Measures that aim to tax the housing income of minimum-wage earners, increase debts for citizens with unpaid GSS premiums, and raise costs for soldiers who cannot work while performing military duty. This bill tramples on tax justice.”

He argued that the proposal violates many fiscal principles and will only deepen inequities.

AK Party: “We Are Expanding the Tax Base and Fighting Informality”

Defending the proposal, AK Party Aksaray MP Hüseyin Altınsoy, one of the bill’s first signatories, said the reforms are designed to improve fairness, expand coverage, and eliminate loopholes:

“With this bill, we are introducing adjustments to bring untaxed areas into the system, eliminate certain exemptions, combat informality, and strengthen tax justice.”

Altınsoy emphasized that the package aims to modernize the tax system and create a more consistent structure.