No Raise for Retirees: New Omnibus Bill Sparks Controversy in Parliament

The highly anticipated omnibus bill submitted to the Turkish Grand National Assembly by the AKP has officially dashed the hopes of millions of retirees. Despite widespread expectations for a hike in holiday bonuses, AKP Group Chairman Abdullah Güler confirmed that the payment will remain stagnant at 4,000 TL, the same amount distributed last year. This decision has drawn sharp criticism from opposition parties, who argue that the bill prioritizes tax expansion and executive authority over citizens’ welfare.

Taxing the Digital Frontier: Crypto and Betting Under Fire

One of the most striking elements of the 19-article proposal is the introduction of a Crypto Asset Transaction Tax. Under the new rules, a tax of 0.0003% will be levied on all sales and transfers within the crypto market. Additionally, a 10% withholding tax will be applied to gains made on licensed platforms.

The bill also tightens the belt on the betting industry by prohibiting advertising expenses from being deducted from tax bases. Furthermore, the corporate tax exemption for hospitals affiliated with foundation universities will be revoked—a move the government labels as “tax justice,” while critics warn of rising costs for patients.

Strategic Shifts: BOTAŞ Debt Relief and Privatization

The proposal includes a controversial maneuver regarding BOTAŞ, the state-owned energy giant. The company’s massive debts stemming from natural gas imports—including taxes, fines, and interest—will be “erased” by offsetting them against Treasury receivables. While the state company receives relief, the bill offers no such amnesty for the tax debts of ordinary citizens.

Key highlights of the economic restructuring include:

• Asset Sales: Public properties deemed “surplus” can now be sold through the Privatization Administration.

• VAT Changes: Full exemptions for certain services, including those provided by Kızılay and housing sales to foreigners, are being narrowed.

• Luxury Tax: Diamonds, pearls, and precious stones will now face a 20% Special Consumption Tax (SCT).

Military and Housing: Rising Costs for Citizens

The cost of paid military service (bedelli askerlik) is set to rise steeply. By adjusting the calculation index, the fee will increase from 333,089 TL to 416,361 TL—a 25% increase intended to fund the Defense Industry Support Fund.

For those in earthquake-affected zones, a “cash payment discount” has been introduced. Residents who pay off their housing debts by the end of 2026 can receive a 74% discount. However, analysts point out that this benefit is inaccessible to disaster victims who lack the immediate liquidity to pay in a single lump sum.

The opposition maintains that the bill represents a significant transfer of economic power to the Presidency, allowing for the adjustment of tax rates and fund allocations without parliamentary oversight, while the financial burden of the crisis continues to fall on the public.