ATO/Baran: Access to Financing is a Challenge for the Business World, KGF Should Be Activated
Forex - The President of the Ankara Chamber of Commerce (ATO), Gürsel Baran, along with ATO Council President Mustafa Deryal, ATO Board and Council Members, hosted Deputy President Dr. Cevdet Yılmaz in a meeting where the demands, issues, views, and suggestions of ATO members were conveyed.
The meeting, held at the ATO Duatepe Service Building, was also attended by Deputy Minister of Commerce Özgür Volkan Ağar, Deputy Minister of Labor and Social Security Prof. Dr. Lutfihak Alpkan, Deputy Minister of Treasury and Finance Dr. İ. İlhan Hatipoğlu, and Deputy Minister of Industry and Technology Dr. Çetin Ali Dönmez.
Speaking at the meeting, ATO President Gürsel Baran stated that the minimum wage issue is also a priority agenda for the business world. He noted that even before the Minimum Wage Determination Commission started its work, the issue was raised by the parties, and an increase rate was formed in everyone's mind. Baran expressed, “Representatives of employees, employers, and the government will conduct detailed studies in the Commission. For our workers, there is a subsistence issue, and for our businesses, a cost issue. We hope for the announcement of a figure that both sides can agree on. At this point, I want to draw attention to one matter. The minimum wage represents the most basic wage level. Wages vary depending on the nature of the work. Sometimes we see in the newspapers that furniture masters earn 60 thousand lira a month, wall masters 100 thousand lira, and those using construction machinery 150 thousand lira. What I am trying to convey from this is that our main problem is the lack of skilled labor.”
- BEING PROFESSIONAL MULTIPLIES MINIMUM WAGE -
Baran stated that while there are universities in nearly every province in Turkey, the number of skilled labor and masters is inadequate. He remarked, “No one wants to be an apprentice in a profession. If we can train skilled labor, if we can provide vocational qualifications to our young people, they may earn at the minimum wage level in the early years of their profession, but in the following years their income level will exceed the minimum wage. Skilled labor is also a factor that will increase the production and service capacity of businesses. No employer would want to part with an employee who advances the business. They will do everything they can to keep their employees at their workplace and ensure their welfare and peace.”
Baran mentioned the concerns arising from the return of many Syrian refugees employed in various sectors to their home country as the Assad regime comes to an end, which could cause difficulties in employment within those sectors.
- CREDIT GUARANTEE FUND SHOULD BE ACTIVATED -
Baran pointed out the difficulties faced in accessing finance by stating, “The high cost of loans due to inflation causes serious problems in the financing of commercial life. The Credit Guarantee Fund should be activated during this process. Supports for the real sector should be brought up with KGF.”
- INSTALLMENT REQUEST FOR COMMERCIAL CREDIT CARDS -
Baran expressed that commercial credit cards are an important financing tool for businesses, saying, “Our businesses are trying to ensure their sustainability by conducting all their transactions via credit card. Despite all this, the limitations imposed on installments for commercial credit cards lead to grievances. Our businesses demand that the opportunities and variety of installments applied to commercial credit cards be increased in order to manage cash flow and enable financial planning.”
Baran also conveyed to Deputy President Yılmaz the request for the removal of limits on tax payments made with credit cards, allowing for payments according to the taxpayer's credit card limit.
- TAX REFORM IS NECESSARY -
Baran stated that the current tax system triggers informality due to differences in VAT rates and the high share of indirect taxes, asserting that, “We believe that the tax system should be fundamentally addressed, and a fair and comprehensive tax reform should be implemented that will provide lasting prosperity and eliminate informality. The high tax rates in our country trigger a tendency not to pay taxes. The differences in VAT rates, especially in purchasing and selling within the same sector, create a burden of transactions and increase the inclination towards informality.”
- AMNESTIES ARE DETERRENT -
Baran noted that in the history of the Republic of Turkey, approximately 50 amnesties have been enacted for public debts, stating, “We believe that in every situation, the first thing that should come to mind is not amnesty, but rather developing the reflex to make payments. We see that amnesties create a deterrent effect rather than encouraging citizens to fulfill their obligations. Therefore, the tax system should be structured so that amnesties are not issued approximately every two years, and it should be guaranteed by the Constitution that no amnesty will be issued except under force majeure circumstances. In addition, regardless of the circumstances, discounts given to taxpayers who pay their taxes regularly should be applied at rates that encourage compliance, and the currently applied 5-point discounts should be increased.”
- THE BASIC ISSUE IS INFORMALITY -
Baran indicated that one of the fundamental issues related to taxes in Turkey is the informal economy, stating that it has been said that the rate of the informal economy exceeds 25%. Baran commented, “Until informality is prevented, it will not be possible for us to make our economy completely problem-free.”
- DO NOT DISTINGUISH BETWEEN SMALL TRADESMEN AND MERCHANTS IN SUPPORT AND INCENTIVES -
Baran expressed that the distinction between tradesmen and merchants in public support and assistance creates inequity in the economic field, stating, “Among two neighboring shops operating in the same business, one may be a tradesman, while the other is a registered commercial business in our chamber. Just because the registered organization is different, these businesses are subjected to different applications. Those in the position of tradesmen can obtain financing at approximately half of market interest rates by benefiting from state support through Trade Credit Cooperatives. However, businesses registered with our chambers must pay double the interest of their neighbors if they wish to use credit. Therefore, we demand that equal conditions be provided in state support and incentives without making a distinction between tradesmen and merchants.”
- CONCORDATO BRINGS CREDITOR COMPANIES TO THE POINT OF BANKRUPTCY -
ATO President Gürsel Baran stated that the concordato institution, which is beneficial for keeping companies alive, has become a nightmare for creditors over its application period of more than five years, stating, “While the application protects the debtor, it does not provide a basis that will make the creditor feel secure.”
Baran stated, “The commercial system operates as a chain. In this system, a debtor's failure to make a payment reflects on others. Those who are owed by a company that declares concordato are facing bankruptcy as they struggle to pay their own debts. We believe that the concordato institution needs to be restructured in a way that also considers the creditors. A new system should be established where the owners or managers who bring a company to the point of declaring concordato will also be held accountable, and those who are owed by that company will be able to collect their receivables promptly.”
- THE TIME LIMIT FOR FILING LAWSUITS SHOULD BE REGULATED TO 1 YEAR -
Baran mentioned that labor disputes are among the significant issues faced by the business world, stating, “The time for workers to file lawsuits regarding severance pay, annual leave, and other compensation after leaving work is currently 5 years. We demand that this process be rearranged to allow for legal action within one year to prevent uncertainty regarding the future of the business and to allow us to see ahead.”
Addressing social assistance issues, ATO President Gürsel Baran noted, “We believe that we need to restructure the current social assistance system not only to reduce poverty but also to encourage the participation of eligible individuals in the labor force.” He also added that they believe consulting with business representatives in decisions that will affect the real sector will help prevent possible grievances and lead to more accurate and appropriate outcomes.
After Baran's speech, ATO Board and Council members expressed their issues one by one in the meeting where a dossier containing the views of the members belonging to ATO's 68 Professional Committees was presented to Deputy President Yılmaz.
The meeting also included Revenue Administration President Bekir Bayrakdar, General Director of İŞKUR Samet Güneş, General Director of Incentive Implementation and Foreign Investment at the Ministry of Industry and Technology Hüseyin Cahit Büyükbaş, Deputy General Director of Internal Trade at the Ministry of Commerce Hüseyin Altındal, ATO Vice President Temel Aktay, Council Vice Presidents Vecdet Fehmi Şendil and Ali İhsan Özdemir, and ATO Board Members Adem Ali Yılmaz, Ahmet Akça, Ali Yıldız, Ali İhsan Güçlü, Halil İlik, Assoc. Prof. Dr. Ömer Çağlar Yılmaz, Yasin Özyolu, and ATO Council Secretary Ayşe Nilay Çelik.