CHP’s Gürer: Debt cancellation application did not reduce enforcement files

(ANKARA) – Treasury and Finance Minister Mehmet Şimşek answered the parliamentary question submitted by CHP Niğde Deputy Ömer Fethi Gürer regarding the number of people whose debts were written off and whose principal and subsidiary totals were below 2 thousand liras before January 1, 2023. Gürer stated that Minister Şimşek stated that 4 billion 20 million 616 thousand 614.70 TL worth of debts belonging to 6 million 818 thousand 285 taxpayers were written off, and said, “Although it is an application aimed at reducing the number of files in enforcement offices, the problem did not disappear with the writing off of debts.”

Treasury and Finance Minister Mehmet Şimşek answered the parliamentary question submitted by CHP Niğde Deputy Ömer Fethi Gürer regarding the number of people whose principal and accessory debts were 2 thousand liras and below before January 1, 2023 and whose debts were erased. Şimşek stated that 4 billion 20 million 616 thousand 614.70 TL worth of debt belonging to 6 million 818 thousand 285 taxpayers was erased.

In response to Ömer Fethi Gürer’s proposal, Minister of Treasury and Finance Mehmet Şimşek stated that within the scope of Article 10 titled “Other Provisions” of the Law No. 7440 on Restructuring of Certain Receivables and Amendments to Certain Laws, among the receivables followed up by the collection departments affiliated to the Ministry of Treasury and Finance according to Law No. 6183, the collection of those whose due date was before December 31, 2022 (inclusive) but which have not been paid as of January 01, 2023 and whose total primary and secondary receivables accrued in the name of a public debtor does not exceed 2 thousand Turkish Lira as of all collection departments have been waived and within this scope, a cancellation transaction of TL 4 billion 20 million 616 thousand 614.70 belonging to 6 million 818 thousand 285 taxpayers has been carried out.

“Despite the cancellation of debts of 6 million 818 thousand 285 people, the increase in enforcement files continues”

Noting that although debt cancellation is a practice aimed at reducing the number of files in enforcement offices, the problem does not disappear with debt cancellation, Gürer pointed out the increase in the number of enforcement files throughout Turkey and said, “The number of files submitted to enforcement offices this year has reached 4 million 937 thousand 971. Despite the debts of 6 million 818 thousand 285 people being canceled, the increase in enforcement files continues.”

Stating that there has been a significant increase in the number of enforcement files in the last week, Gürer said, “The number of enforcement files has increased by 111,986 new files in this short period of time. This situation is an indicator of the economic crisis in Turkey and the negative effects of the AKP government’s economic policies on citizens.”

Gürer stated that the economic crisis and the AKP government’s pressure on citizens to get into debt has led to many citizens being unable to pay their debts due to insufficient income, and thus falling into foreclosure proceedings.

Expressing that the increase in consumer loans and individual credit card debts of citizens to banks continues, Gürer said, “Individual loans and credit card debts, which were 3 trillion 265 billion TL in the week of July 5, increased by 31 billion TL in the week of July 12, reaching 3 trillion 297 billion TL. There has been a significant increase in consumer debts in a short time, and it is seen that the financial burden of households is growing rapidly. The economic policies of the AKP government are causing the debt sink to deepen even more, instead of increasing the welfare of the people.”

CHP’s Gürer stated that the amount of debt monitored by banks increased from 46 billion 119 million TL in the first week of the year to 71 billion 691 million TL. Gürer stated that the small increases made to the salaries of large social groups, especially retirees, workers, farmers and civil servants, were insufficient.

Gürer said, “Inflation, which increased due to the economic crisis, reduces citizens’ purchasing power and forces individuals to take on debt. The deterioration of the income-expenditure balance leads to many citizens being unable to pay their debts and facing foreclosure. This data clearly reveals the weaknesses in the country’s economic management. Retirees, workers, farmers and civil servants, who are the segments that bear the brunt of the economic crisis the most, are struggling with financial difficulties due to the inadequate policies of the government.”

Ömer Fethi Gürer stated that ensuring justice in taxes is important for retired, low-income, fixed-income and minimum wage earners, and said, “Justice should be provided in tax brackets. The first tax bracket should not be below the annual earnings of the minimum wage. The tax rate collected from the consumption of natural gas, electricity, water, transportation and communication services should be reduced by 1 percent. The tax collected from basic consumer goods should be reduced to zero. A serious fight should be fought against informality. Tax justice should be provided and those who earn a lot should pay less tax while those who earn very little should pay less tax. A solution should be found first for the problems of those who have difficulty making ends meet in the disrupted economic balance.”