[ , ] Sayı:294 Haziran 2004

This Issue

Editör'den

Güncel

NARİN: Türkiye'de vergi vermemek için yarış yapılıyor

Dünya çapında 30 milyon işini kaybedecek

Abdülkadir Konukoğlu

İş Kanunu'ndaki aksaklıklar izlemeye alınıyor

IMF heyeti TİSK'İ ziyaret etti

Gündem

Asgari Ücret Komisyonu toplandı

Asgari ücret 318 milyon lira

Dornbirn Kimyasal Elyaf Kongreleri

İş dünyası bir duayenini daha kaybetti

2005 için sonun başlangıcı

ILO Konferansı

92. Uluslararası Çalışma Konferansı toplandı

Söyleşi

ÖZKAN: İçimizdeki Çinliler'le de savaşıyoruz

Firma

Saray Halı hedef büyüttü

Araştırma

2003 TEKSTİL MAKİNELERİ YATIRIMLARI VE DÜŞÜNDÜRDÜKLERİ

Hukuk

ALT İŞVEREN İLİŞKİSİNDE MUVAZAA (Karar İncelemesi)

ENGLISH

Summaries in English

Halit Narin, the Chairman of our Association, answered the questions of Murat Birsel on TV-8:
"People are racing not to pay taxes in Turkey"

Stating that the government should stand by the taxpayers that pay their taxes, the Chairman of the Board of Directors of our Association Mr. Halit Narin said, "You cannot increase the tax revenues if you mistreat the ones who pay their taxes and do nothing to those who do not pay any taxes.

People are racing not to pay taxes in Turkey."

Mr. Narin' s answers to Murat Birsel's questions are as follows:

BIRSEL: What do you think about the future years? Is Turkey moving to a better position? There is also the national income survey you have had done.
NARIN: Turkey is used to saying, "I am not the man of such high figures" and "The Europeans are bigger than us". Turkey has become a country where people cannot fit Ataturk's reasoning into their heads. In fact, the West is behind us. You can see the latest figures in Europe: the investment and growth rates are below 1 percent. Everyone thinks that the USA is rich; but there are many poor people also in the USA. They only have 50 million people covered under social security. However, they still calculate Turkey's Gross National Product for the year 2003 with
the criteria used for the year 1986. They announce the GNP for the year 2003 to be US$ 3300. However, that figure is much higher than US$ 5500. The purchasing power is US$ 12.500. The figures announced by the State Institute of Statistics (DIE) are much lower than these figures, because of the criteria they use.
Furthermore, 11 million people in Turkey have an income over US$ 20 thousand, which is above the standard in Belgium.
BIRSEL: You mean that we are a country that is quite rich. But, why are we in a situation like this? Don't we pay taxes?
NARIN: According to the official figures announced by the government, the amount of savings in Turkey is US$ 250 billion, which is in the form of treasury bills, or at banks, etc... Minister of State Ali Babacan estimates that, "there are also those out of the country which amount approximately US$ 250 billion", and it is true. That is the excess of the incomes generated in Turkey, which is saved and set aside. If the people of this country can save total of US$ 500 billion, then no one has the right to say that the GNP in Turkey is US$ 3000.
Of course, if you mistreat the ones who pay their taxes and make them regret being born, then you cannot collect taxes. The taxpayers submit their balance sheets, and in case of a mistake, they incur fines due to the mistake. However, just as in Europe, the Tax Administration should guide the taxpayers and help them correct any mistakes. Because, the taxpayers that pay their taxes are those who create the revenue of the state and who are to be greatly respected.
It is not fair if you mistreat the ones who pay their taxes and do nothing to those who do not pay any taxes. People are racing not to pay taxes in Turkey.
There are merchandises imported from China under the inward processing regime. Nevertheless, for the last three years, we have been saying that the inward processing regime creates tax evasions; the taxpayers do not pay taxes. Those who use the inward processing regime are those who do not pay any utility bills, employ workers under Social Security Organization payroll, and not have a capacity report. They evade the income tax. They also get 18% tax refund for fictitious exports.
If you equate those who pay their taxes with those who don't, then how will you be able to increase the number of taxpaying investors? The government says that there is a tax loss due to fictitious exports. Then, you should investigate all the inward processing licenses, including those issued in the past, and solve the problem on that very day. If the importers import goods in the amount of US$30 to 40 billion and squander the foreign exchange, which is obtained by Turkey from exports realized through vital investments, in a system in which no taxes would be paid - except for exceptions - without submitting a tax return, then, as the taxpayer Halit Narin, I naturally raise objection to it.

Issue of the Month

Although the figures for the first half of 2004 are promising, Turkey that will meet the changing conditions of the world trade by the beginning of 2005 does not seem to have overcome the fragile point
Year 2004 was considered to be a "critical year" for the Turkish economy. Although the figures for the first 5 months of 2004 give favorable signals in terms of growth, inflation, and interest rates, it seems that, from the point of view of particularly the exporters, the developments expected in terms of exchange rate, privatization, investments, and foreign capital have not been attained yet.
However, year 2004 is considered to be a year when the world trade is on the threshold of major changes. Expiration of quotas in 2005 will cause new rules to occur and considerable changes in the balance of power.
Turkey grew by 5.3 percent in 2003 and is expected to grow 5 percent in 2004. The inflation was brought down to the level of 19 percent last year and this success also continues in 2004. Turkey has also succeeded in eliminating the impacts of the War on Iraq rapidly. In spite of the favorable effects of the determined stance of the new government relating to membership into the European Union, and of the continuing implementation of the program for transition to strong economy, the fact that the country has not reached the desired level with regard to attracting foreign investments and prevention of the private capital flight draws attention.

30 million jobs at stake worldwide

Representatives of 47 countries have called the World Trade Organization to extraordinary meeting against the threat and unfair competition to be caused by China after the expiration of quotas in 2005.

The Brussels Summit held with participation of the countries supporting the Istanbul Declaration lasted 3 days.
The Final Report announced to the world public at the end of the summit expressed support for a three-year extension of the textile and apparel quotas that will expire in 2005, the implementation of automatic safeguard mechanisms to prevent disruptive fluctuations in textile and apparel imports, as well as the expedited and effective remedies to unfair trading practices employed by certain major supplier countries.
Textile and apparel executives and government observers from 25 countries attended the Summit. Jean-Francois Gribomont, the President of Eurocoton, said that the WTO would either witness a massive economic crisis if it does not do anything, or, by taking decisive actions, ensure that the world trade in textiles and apparel is not disrupted.
As participants in the 90-member Global Alliance for Fair Trade in Textiles and Clothing Industry representing 47 countries, the participants of the Summit in Brussels agreed to the following statement in affirmation of their original commitments in the Istanbul Declaration:

A) A crisis of unprecedented dimensions in textiles and clothing is now at hand. This will have profound ramifications, particularly for less developed and developing countries around the world.
B) Since the quota phase-out was initiated, anticompetitive and trade-distorting practices have been
introduced by a few major exporting countries that now seek to monopolize trade in this essential sector.
C) The expiration of textile and clothing quotas in January 2005 will exacerbate disruption in the global marketplace. This will lead to a catastrophic transfer of wealth and the loss of at least 30 million direct jobs, mostly in underdeveloped and developing countries. The heaviest burden will fall on women, who represent the majority of employment in this sector.
A partial brake to the imports causing the manufacturers to suffer losses
Domestic manufacturers, who have been in a very difficult situation due to unstoppable importation of particularly the Chinese products, will now be safeguarded. Pursuant to the "Regulations on Safeguarding Measures for Imports" of the Under-secretariat of the Prime Ministry for Foreign Trade (DTM), which became effective after being announced in the Official Gazette, safeguard measures will be taken against increased imports, where such imports cause the domestic manufacturers to suffer losses. As per the new regulations, the safeguard measures can take the form of an increase in the customs duties, introduction of additional costs, quantity/value restrictions, or application of tariff quotas. The average importation level of the last three representative years will be taken into consideration in determining the level of the quotas, unless any other levels are required to eliminate or prevent any serious damages. Unless it is extended, the term of such safeguard measures will not exceed 4 years.
In addition to the safeguard measures, as the case may be, surveillance will also be used as a tool to closely observe the trends in imports of certain products.

Konukoglu: "VAT reduction in textiles would be great gain for the country and the sector in every respect"

Abdulkadir Konukoglu, Chairman of the Board of Directors of Sanko Holding and Chairman of the Textile Sector Board of the Turkish Union of Chambers and Commodity Exchanges (TOBB) answered our questions regarding the Chinese threat after the expiration of quotas in 2005 and VAT reduction in textiles. Pointing out to the necessity that we should fear China, Mr. Konukoglu said, "We are to open a representative office in China. We aim to better promote our products. Thus, we will be able to increase our exports, and consequently our production."

What are your opinions about the Chinese threat?
Abdulkadir Konukoglu: A China-phobia has deeply affected various sectors, particularly the textiles. However, it is impossible to achieve anything if you are afraid. I am of the opinion that we should not fear China. There were similar fears at the time when the Soviet Union was being dissolved, but nothing happened. Russia has become the biggest importer. When the doors have been opened under the free market economy, similar things would be seen in China, where the population has already exceeded 1 billion, as a result of democratization process. When the masses of consumers, who currently wear identical clothing, begin wearing different clothes as a result of the economic development and democratization process, its own production will not be sufficient any more. We should plan what and how we will sell to China right now. Instead of wasting time with groundless fears, Turkey should speed up the operations aiming to increase the quality and to enable branding.
Thus, we aim to better promote our products. Thus, we will be able to increase our exports, and consequently our production.
What are your opinions about the VAT reduction in textiles?
Abdulkadir Konukoglu: The Ministry of Finance and the Prime Ministry both say yes to the VAT reduction in textiles, but the relevant decree has not been issued in one way or another. They say the IMF objects to it. I hope they convince the IMF and issue the decree soon. VAT reduction in textiles would be great gain for the country and the sector in every respect.