Election incentives
The AK Party has begun to roll out economic incentives ahead of local elections
The parliament enacted two separate legislative proposals, including important regulations on the economy, before recessing for its scheduled break until February 5. The parliament is expected to make the amendment to the personal rights of teachers, police, clerics and nurses - as the AK party promised during the June 24 elections and included in the second 90-day action plan - by March as there may be further parliamentary breaks leading up to the March 31 elections. It’s expected that the regulation, which will provide an increase of 20 percent in salaries and retirement bonuses, will affect about 1.6 million people. The amendment, a joint effort of the Ministry of Treasury and Finance and the Ministry of Family, Labor and Social Services, is expected to be adopted before the local elections.
TRY 13.5 b
ll on support
The two laws enacted by the parliament include minimum wage support, which will continue for all of 2019. The annual cost will be TRY 13.5 billion and 9.3 million employees will benefit from it. The minimum wage support will be TRY 150 per month per employee for enterprises employing under 500 employees, TRY 100 per employee for enterprises that have more than 500 employees. For insured persons determined for the workplaces registered before 2019, there will be no support for the insured months. Additionally, up to TRY 30,000 of income of female entrepreneurs generated from the sale of products over the internet such as towels, lacework, tarhana and noodles, will be exempt from income tax.
F nanc al Stab l ty and Development Comm ttee to be establ shed
With the adopted law, the Financial Stability and Development Committee will be established within the Treasury and Finance Ministry in order to manage systemic risks to support economic growth of the financial system, maintain trust in the markets and to ensure compliance with financial regulations and practices. The corporate tax rates, which are based on investment expenditures within the scope of the investment incentive certificate for the manufacturing industry enacted in 2017 and 2018, will also be implemented in 2019. The president will be able to extend this period to five years. Turk Reasurans A.S. will be established to provide insurance and reinsurance collaterals in order to increase domestic reinsurance capacity and to cover the financial and physical damages that may occur as a result of various risks that may not be covered in the country or which have difficulties in providing collateral.