‘Economic burden on municipalities is no longer bearable in Turkey’

* Photo: Antalya Metropolitan Municipality

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11 metropolitan mayors from the main opposition Republican People's Party (CHP) have released a second joint statement addressing the government and raised concerns over the increasing economic burden on municipalities in Turkey amid ongoing price increases.

The mayors have underlined that the increases in the prices of electricity, which is used in subway and tram services, and in the prices of fuel oil, which is used in several other types of vehicles, have brought great hardships on the part of public transportation services.

On January 27, 2022, the 11 CHP mayors released another statement addressed to the Justice and Development Party (AKP) government; however, the requests made by mayors have remained unresponded. Accordingly, they have released a second joint statement.

The CHP mayors, including İstanbul Metropolitan Mayor Ekrem İmamoğlu and Ankara Metropolitan Mayor Mansur Yavaş, have requested that the fuel oil used by municipalities be exempted from the Value Added Tax (VAT) and Special Consumption Tax (ÖTV) so that citizens can be protected from the adverse effects of the recent and ongoing price hikes.

The metropolitan mayors have also listed a series of requests concerning the electricity, water and natural gas tariffs.

Mayors have said, "The current economic hardships and successive price increases in our country directly affect our local administrations and therefore have the risk of negatively affecting our citizens," adding: "We have felt the need to reiterate some of our previous recommendations and warnings. Because the burden on our municipalities is no longer bearable."

The joint statement has been signed by the following 11 CHP metropolitan mayors: Zeydan Karalar (Adana), Ekrem İmamoğlu (İstanbul), Mansur Yavaş (Ankara), Tunç Soyer (İzmir), Muhittin Böcek (Antalya), Yılmaz Büyükerşen (Eskişehir), Özlem Çerçioğlu (Aydın), Osman Gürün (Muğla), Vahap Seçer (Mersin), Kadir Albayrak (Tekirdağ), Lütfi Savaş (Hatay).

Requests of metropolitan mayors

In the introduction to their joint statement, the mayors have raised concerns that no statement has so far been made about their previous recommendations and requests and "the Union of Municipalities of Turkey has also turned a blind eye to this situation."

Reiterating their previous requests, the mayors have briefly said:

"Especially for a proper functioning of public transportation, we request that the fuel oil used by municipalities be exempted from the Value Added Tax (KDV) and Special Consumption Tax (ÖTV).

"Similarly, a new and advantageous tariff must be offered to municipalities concerning the costs of electricity, which is intensely consumed in public transportation. We would like to indicate that the increase in electricity prices since 2019 has reached 300 percent. It needs to be remembered that the increase in electricity prices directly affects the water costs."

Underlining that one of the most significant cost items of water operators is electricity consumption, the mayors have also demanded reduced tariffs for the prices of electricity, which is used to ensure that citizens access water. According to the statement, the water operators now pay electricity bills three times the ones that they paid last year.

Similarly, since 2019, the natural gas prices have also increased by 113 percent. Accordingly, mayors have expressed expectations that all municipalities will be offered a different tariff in that regard.

Concluding their statement, the metropolitan mayors have noted that while the prices of cheap bread sold to citizens via their "Public Bread" buffets have so far been kept at affordable levels, the costs of bread production will also be unbearable if the Turkish Grain Board (TMO) does not offer a sufficient amount of flour to municipalities at affordable prices. (HA/SD)