Parliament passes omnibus bill with salary increases, tax hikes

 Photo: AA

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The parliament has passed an omnibus law that encompasses salary increases for civil servants and retirees, as well as tax hikes to compensate for the economic losses caused by the massive earthquakes that occurred on February 6.

Under the approved legislation, the minimum salary for civil servants has been raised by 86% to 22,017 lira (1 US dollar = 26.01 Turkish lira). Retirees, on the other hand, will see their pensions increased by 25%. The government implemented a 34% increase in the minimum wage, set to take effect from July.

However, there have been concerns among civil servant unions who view the subsequent tax and fee hikes as offsetting the wage increase. They have criticized this approach as "giving with one hand and taking with the other."

To meet the financial requirements arising from the earthquake aftermath, the law introduces an additional Motor Vehicle Tax (MTV) as a one-time measure. This tax will be levied on all registered vehicles, including cars, buses, trucks, vans, airplanes, and helicopters, as well as on any vehicles that are registered by December 31, 2023. The amount collected through the additional MTV will correspond to the total MTV accrued for the year 2023.

Development in forested areas

The omnibus law also includes provisions related to urban development in the region following the February earthquakes, which officially claimed the lives of over 50,000 people. Accordingly, forested areas, olive groves, and olive fields will be limited by specific boundaries on maps to meet the housing needs of earthquake victims.

In villages where site selection has not yet been completed and in rural areas where no other options are available, if necessary, urban areas with forest land characteristics can be used, with a limit of one thousand square meters per beneficiary, effective from the date of enforcement of the provision. (TY/VK)