The Increase in Tax Rates by President Erdoğan’s Decision Is the Multiplication of Cruelty

News:

The Presidential Decree, which led to high increases in tax and fee rates, was published in the Official Gazette dated July 7, 2023 and entered into force.

Comment:

Recovering the Turkish economy, which is deteriorating day by day, and restoring the fiscal discipline, which has deteriorated with ever-increasing budget deficits, are among the primary goals of the economy administration headed by Mehmet Şimşek, who was appointed by President Erdoğan after the elections and presented as a savior.
For this purpose, high increases were made in income tax, corporate tax, special consumption taxes, especially fuel, and VAT rates.

Besides, an additional motor vehicle tax was introduced and the rates of fees were raised.

These tax increases, which were made in order to increase the budget revenues, have led to a substantial loss in the purchasing power of the low-income people, who constitute the majority of the country’s population.

The segments of the society that already have an income level below the poverty and starvation line have been pushed into hunger and poverty due to taxes on consumption such as VAT or special consumption taxes on fuel.

Taxes on consumption mean that the tax is spread over the entire population of the country.

When an 8-year-old child shops with his/her pocket money given by his/her father, or when elderly and needy women, or unemployed people without an income, or pensioners shop, they have to pay VAT and other taxes on consumption.

In short, President Erdoğan’s government even sets its eye on the few pennies in the hands of people living below the starvation and poverty line.

And this is the multiplication of cruelty.

An even greater cruelty is the transfer of a portion of the taxes collected from people living below the starvation line from the budget to the capital owners and the rich as interest.

According to Islam, permanent taxes collected from the entire people such as VAT and special consumption taxes, are haram.

When the state cannot satisfy its needs anymore, then it could tax the Muslims who have income which is more than the income to satisfy their needs.

Taxes are levied in the amount needed for the expenditures of the state. The needs and ability to pay of the people are taken into consideration when tax is levied. Taxes are not levied on the income needed; taxes are levied not only on income but on surplus income.

The state can do the same today. It can tax only the surplus income of people who have income. In addition, if it can prevent waste, unnecessary and luxurious expenditures in the public sector and prevent corruption, it does not need to tax the entire population.

There is a solution and the solution is in Islam.

However, in order to implement this solution, sincere rulers who really care about their people and a strong will are needed.

Beyond deprivation, President Erdogan's government prefers the solutions of the colonialist kafir West, which constantly produce crises, instead of the best solution coming from the Lord of the Worlds, who knows everything and is the best of those who rule.

Therefore, what needs to be done is to change this system, which is the source of oppression, not the individuals.

The solution is undoubtedly in the Economic System of Islam and the re-establishment of the Khilafah Rashidah (rightly guided Caliphate) State, which will implement this system.

Written for the Central Media Office of Hizb-ut Tahrir by
Remzi Özer – Wilayah Türkiye