Municipal Debt Reduction through Tax Deductions in Budget Regulations
New Presidential Decision on Deductions from Tax Revenues Published in Turkey
A new Presidential Decision regarding the implementation of regulations for the deduction of debts from various municipalities has been published in the Official Gazette in Turkey. The decision includes amendments to the debts collected by deduction from the shares allocated over the general budget tax revenues collection total and restructured within the scope of the 7440 Law dated March 9.
The new regulation defines additional deductions to be made from the share of general budget tax revenues allocated from the total collection regarding some debts of special provincial administrations, municipalities, and their affiliates. Under this regulation, an additional 10 percent deduction will be made for those who already have a 40 percent deduction from the monthly installment amounts of the institutions in question. For those with 25 percent deductions, an additional 25 percent cut will be applied.
The decision aims to ensure that the debts owed by various municipalities can be repaid more quickly and efficiently, allowing the government to better manage its finances and encourage economic growth. This latest Presidential Decision is part of Turkey’s ongoing efforts to address economic challenges and improve the financial situation of the country’s various municipalities.
