Yesterday, the new tax reform was discussed at the meeting held with the Minister of Treasury and Finance Mr Mehmet Şimşek and his delegation. The Union of Chambers and Commodity Exchanges of Turkey (TOBB), the Turkish Exporters Assembly (TİM) and the Foreign Economic Relations Board (DEİK), as well as the heads and representatives of non-governmental organisations operating in Turkey, took part in this important meeting. As MÜSİAD, we had the opportunity to participate in the meeting and convey our views.

At the meeting, our President Mr Mahmut Asmalı stated that although there was no draft text reaching them, MÜSİAD made a preparation based on the draft text circulated on various social media platforms, but that it would be more appropriate to bring up and discuss a fundamental tax reform instead of talking about the laws that will change one by one today.

In the continuation of his speech, our General President said; ‘Decisions to be taken as a result of changes to be made in such a short period of time may attract social reaction. Because tax is not only an economic obligation, but also a social contract. The correct understanding and implementation of this contract is a vital element that affects all segments of society.

The tax system is a reflection of the economic and social structure of society. The tendency to pay taxes in societies is based not only on economic power but also on cultural values. For many people, tax is the most concrete indicator of their relationship with the state. In order for this relationship to be based on solid foundations, justice and trust must be established.

Continuous changes in tax laws undermine social trust. Continuous changes in the tax system create uncertainty and distrust in taxpayers' relations with the state. The inability of taxpayers to plan their future due to constantly changing tax policies creates economic uncertainty. Instead of frequent changes in tax laws, long term and sustainable policies, determined by social consensus, should be established. This will both increase tax compliance and reinforce social trust.’

Touching upon the necessity of a deep-rooted and sustainable tax reform, our President gave information about the ‘Panel on the Need for Tax Reform in Turkey and Simplicity in Taxation’ organised by MÜSİAD in Istanbul in December 2023 with the participation of public and private sector representatives, and the ‘Symposium on Current Developments in Tax Jurisdiction’ organised in cooperation with Yıldırım Beyazıt University and Pamukkale University in May 2024. He stated that these events were organised with the aim of increasing tax awareness and reinforcing trust in tax.

As MÜSİAD, we propose a reform that includes important changes such as simplifying the tax system, reducing tax types, broadening the tax base and reducing tax rates. We state that steps such as limiting tax exceptions, discounts and exemptions, simplifying tax laws and digitalising tax administration should be taken rapidly.

We believe that simplifying the tax system will support economic and social development, reduce the burden of taxpayers and increase tax revenues.

As MÜSİAD, we believe that we need reforms that take into account the social and cultural structure in order to make our tax system more fair and effective, that our government should take into account not only economic data but also social dynamics when determining tax policies, and that the fight against informality can only be successful in this way.

Reforms to be made with social consensus, not with hasty decisions, will make our country have a fair, transparent and participatory tax system. This will ensure economic stability and reinforce our social peace.

It is respectfully announced to the public.