Unions want tax bracket update in the face of high inflation
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Heads of two trade union confederations have separately called for updated tax brackets amid soaring inflation.
Ergün Atalay, the chair of the Confederation of Turkish Trade Unions (Türk-İş), said tax brackets are not fair despite the government's decision at the start of the year to exempt part of people's income equal to the minimum wage from taxation.
A worker with a gross monthly salary of 8,000 lira earns 6,395 after cuts in January, and 6,052 lira at the end of the year, he noted. After a raise in the second half of the year, the monthly minimum wage is currently 6,471 lira (1 US dollar = 18.12 Turkish lira).
"At the end of the year, a worker with a 8,000 lira gross salary pays 1,948 lira of taxes and SGK [Social Security Institution] cuts at the end of the year. This shows that workers are faced with an unjust taxation on their wages.
"An arrangement in favor of workers should be made in income tax grades and rates. Sixteen million employees, or 50 million people, including their families, expect tax relief from the government.
"While the ratio of the income tax tariff effective in January 2010 to the minimum wage was 12.07 to 1, it decreased to 6.39 to 1 in January this year. The tax pressure on the worker has increased.
"Employees earning more than the minimum wage have to pay more tax and get lower wages by getting into the upper bracket earlier because the income tax tariff is determined at the beginning of the year and annually."
Salaries decrease to below minimum wage
Because the tax brackets were not updated in mid-year, some workers with salaries higher than the minimum wage end up earning less than the minimum wage, the Hak-İş Trade Union Confederation also said.
Sending a letter to the Ministry of Treasury and Finance, Hak-İş Chair Mahmut Arslan requested an update in tax brackets.
"Just as in the need for an interim rise in the minimum wage due to high inflation, income tax brackets should be raised at least at the rate of inflation," he said.
Türkiye's official inflation rate exceeded 79 percent in July, according to the official figures.
Income tax brackets• 15 percent for up to 32,000 lira • 4,800 lira for 32,000 lira of 70,000 lira, and 20 percent for the rest • 12,400 lira for 70,000 lira of 170,000 lira, and 27 percent for the rest • 39,400 lira for 170,000 lira of 880,000 lira, and 35 percent for the rest • 287,900 lira for 880,000 lira of incomes over 880,000 lira, and 40 percent for the rest |
(HA/VK)