Government submits bill to hike minimum pension

ANKARA

The ruling Justice and Development Party (AKP) has submitted a bill to parliament that will lift the minimum pension by 2,500 Turkish Liras to 12,500 liras ($378).

Some 3.7 million of the country’s 15.8 million pensioners will benefit from the increase, said Abdullah Güler, AKP parliamentary group chair.

The new regulation will cost the budget 33.2 billion liras, according to Güler.

Meanwhile, the bill foresees that the fee that Turkish nationals are required to pay flying abroad will be increased from the current 150 liras to 500 liras, he noted.

The bill also introduces a minimum 15 percent corporate tax on multinational companies, Güler said. 

Data from the Finance Ministry showed yesterday that the central government budget posted a deficit of 275.3 billion in June after running a surplus of 219 billion liras in May.

Expenditures rose 78 percent annually to 866.5 billion liras with interest expenditures increasing 166 percent to 99.3 billion liras. The year-on-year increase in overall budget revenues was 120.4 percent to 591.2 billion liras. Tax collection rose 109 percent to 483 billion liras.

Income tax revenues were up 131 percent to 106 billion liras, while corporate tax revenues rose 37.7 percent to 13.9 billion liras.

The budget produced a primary deficit of 176 billion liras in June, comparing unfavorably with the primary surplus of 330 billion liras in May.

In the first half of 2024, the central government budget widened by 54.6 percent to 747 billion liras.
Expenditures increased 94 percent year-on-year to 4.6 trillion Revenues rose 104 percent to 3.8 trillion liras, while the annual increase in tax revenues was 100 percent to 3.2 trillion liras.

The government targets a budget deficit of 2.65 trillion liras, or 6.4 percent of the estimated GDP, this year.