Ankara: The Turkish government on Monday announced an extensive plan to relieve delinquent taxpayers, warning of tougher measures against evaders in the future to stamp out a large unregistered economy.
Deputy Prime Minister Ali Babacan, who unveiled the draft bill, declined to say how much revenue was expected from the scheme, dismissing as "rumour" media reports that the government was hoping for up to 50 billion Turkish lira ($34.6 billion).
"This is a significant opportunity... The pressure of the state will increase from now on. Life will become harder for those acting outside the law," Babacan told a press conference.
The plan, prompted by the global financial crisis last year, covers corporate, customs and other taxes, social security premiums, fines, water and electricity bills and university fees, which had been due before July 31.
It allows for the payment of past-due taxes and outstanding arrears with a minimal interest rate, forgiving accumulated penalties, and in instalments stretching over up to 36 months, on the condition that the beneficiaries do not default on their liabilities after July 31, Babacan said.
Some fines would be slashed, and some small taxes and fines completely cancelled, he added.
The revenue this plan will generate has not been included in the draft budget for 2011, the minister said, adding that the government would decide later how the money would be used.
The ruling Islamist-rooted Justice and Development Party, in power since November 2002, will compete for a third straight term in office in general elections next year, expected in June.
The legislation will take effect after it is passed by parliament, a process likely to take several weeks.
EU-hopeful Turkey has staged a spectacular recovery from the global crisis, with gross domestic product growing by 11.7 and 10.3 per cent in the first and second quarters respectively.
But chronic problems such as unemployment and a large unregistered economy remain as major challenges for the government.
