TESK President Palandöken: “A comprehensive restructuring of debts to the state is essential for tradesmen to get back on their feet.”

The President of the Turkish Confederation of Tradesmen and Craftsmen (TESK), Bendevi Palandöken, stated, “In order for tradesmen to recover, a comprehensive and long-term restructuring of debts to the state, such as tax, traffic, and SGK premium debts, is essential, just as before.”

TESK President Bendevi Palandöken made a press statement regarding the proposed solutions to the problems faced by tradesmen and craftsmen.

“A comprehensive restructuring of debts to the state is necessary for tradesmen to recover”

Palandöken emphasized that a new restructuring is needed for tradesmen and craftsmen to take a breather in the high inflation climate, saying, “The increase in input costs due to inflation is putting a significant strain on our tradesmen and craftsmen. On one hand, with rising rents, withholding taxes, increases in fuel and energy costs, and employee expenses, our tradesmen cannot replace the products they sell. For tradesmen to recover, a comprehensive and long-term restructuring of debts to the state, such as tax, traffic, and SGK premium debts, is essential. With the recently enacted Law No. 7440, 156 billion TL was collected until the end of 2023. A new restructuring would provide revenue for the state budget and allow our citizens and tradesmen to take a breath of relief,” he expressed.

Pointing out that high inflation disrupts market balance, Palandöken noted:
“As is known, high inflation has indeed disrupted the balance of the markets. On one hand, the number of customers for tradesmen has decreased, and their income has fallen. On the other hand, in order for people to meet their needs, to revive the economy, and to increase state revenues, a new long-term restructuring, in a way that people can afford, is necessary, just as in previous periods. However, on the contrary, people’s accounts are being blocked. When they go for money to pay their debts, they are told that in order to lift this block on them, they must completely pay off their debts. However, if there were a proper installment plan, people would feel at ease and would pay off their debts with the money they receive, but with the block in place, they remain completely inactive, leading to a blockage in the economy. They cannot compete; due to input costs and rent, tradesmen can no longer operate. For tradesmen to survive, both in terms of employment and state tax revenue, this is very important. Blocks should be lifted without wasting time.”

On the other hand, Palandöken underscored that it is becoming increasingly difficult for tradesmen to access financing, saying, “In the past, the low-interest loans that the state provided specifically for tradesmen and craftsmen were a lifeline. Tradesmen could close their debts thanks to those loans. However, as is known, the interest rates on these loans have also lost their attractiveness, making it even more difficult for tradesmen to access financing. Therefore, the restructuring law must be brought back to the agenda to help people get rid of their debts. With restructuring, our tradesmen can organize their cash flow, achieve financial relief, and also create a revival in the markets and a general environment of trust.”