Turkey Proposes Corporate Tax Increase to Fund Earthquake Damage

The ruling Justice and Development Party, led by Turkish President Recep Tayyip Erdoğan, has introduced a bill to parliament proposing an increase in corporate taxes to fund recovery from the damage caused by the powerful earthquakes that struck the country in February. The earthquakes that shook southern Turkey resulted in the deaths of more than 50,000 people and displaced millions. According to estimates from companies, economists, and the government, reconstruction could cost the country over $100 billion. The government has promised to rebuild more than 600,000 homes for those who lost their houses due to the seismic activity. Among several proposed tax increases, the bill includes raising the corporate tax rate to 25% from the current 20% and increasing the tax on banks and financial institutions to 30% from the current 25%. To encourage foreign trade, the bill includes a tax exemption of five percentage points on income from exports for companies, according to the submitted bill.