Palandöken: ‘There is a need for a new restructuring law’

After the announcement of the savings package in the public sector, the President of the Confederation of Turkish Tradesmen and Craftsmen (TESK), Bendevi Palandöken, stated that a new restructuring law is needed for the relief of tradesmen and citizens. He emphasized that the increase in inflation is affecting not only low-income earners but also tradesmen significantly. Today, tradesmen cannot buy the same product at the same price they sold it for. With expenses rising and incomes decreasing, tradesmen are unable to pay their taxes and premiums on time. Palandöken mentioned the necessity of a comprehensive restructuring in various areas such as tax penalties, traffic fines, military service fines, population fines, bridge and highway toll violations, judicial fines, administrative fines, education loan debts, and support premium debts for tradesmen to relax and generate income for the state budget.
Bendevi Palandöken, the President of TESK, also stated that despite the announcement of a savings package in the public sector due to the budget deficit exceeding 500 billion TL for the past three months, efforts to increase tax revenues are being made. He pointed out that tax increases may not always increase tax revenues, as 15-20 TL of every 100 TL of accrued tax cannot be paid. The latest Restructuring Law numbered 7440 has collected 156 billion TL by the end of 2023. If the debts that have been finalized but not paid so far are collected, there will be no need for a new tax increase. This will reduce the budget deficit and relieve tradesmen from debt burden.
Palandöken highlighted that the increase in inflation affects tradesmen as much as retirees and wage earners, stating that tradesmen cannot buy the same product at the same price they sold it for. He mentioned that customers react to tradesmen as if they are the reason for price increases. In such a situation, a new tax increase would increase the debt of tradesmen rather than tax revenue. He suggested that a long-term, interest-free restructuring would have very positive outcomes. Palandöken also emphasized that the main element of these restructurings is for citizens to get rid of all debts, which will bring mobility to markets. Encouraging people to pay off the principal amount of credit card debts and installment payments of others, and closing all debts through restructuring, will contribute to revitalizing the markets.