TESS President Palandöken: A Comprehensive Restructuring of Debts to the State is Essential for Tradesmen to Get Back on Their Feet
Forex - The President of the Confederation of Turkish Tradesmen and Artisans (TESK), Bendevi Palandöken, stated, “For tradesmen to recover, a comprehensive and long-term restructuring of debts to the state, such as taxes, traffic fines, and social security premiums, is essential, just like before.”
TESK President Bendevi Palandöken held a press conference regarding the solution proposals for the problems faced by tradesmen and artisans.
“A comprehensive restructuring of debts to the state is essential for tradesmen to recover.”
Palandöken emphasized the need for a new restructuring to allow tradesmen and artisans to breathe easier in the environment of high inflation, saying, “The increase in input costs due to inflation is putting significant pressure on our tradesmen and artisans. On one hand, rising rents, withholding taxes, and increases in fuel and energy costs, along with labor expenses, prevent our tradesmen from replacing the products they sell. For tradesmen to recover, comprehensive and long-term restructuring of debts to the state, such as taxes, traffic fines, and social security premiums, is necessary. With the most recent Restructuring Law numbered 7440, 156 billion TL had been collected by the end of 2023. A new restructuring would provide income to the state budget and offer our citizens and tradesmen some relief.”
Palandöken stated that high inflation disrupts market balance, adding, “As we know, high inflation indeed disturbs the balance of the markets. On one hand, the number of customers for tradesmen has decreased, and their income has fallen. On the other hand, for people to meet their needs, for the economy to revive, and for the state’s income to increase, a new restructuring that is a bit longer-term and affordable for people is necessary, just like in previous periods. However, on the contrary, blocks are being placed on people's accounts. When they go to access money to pay their debts, they are told that the block can only be lifted once they fully pay their debts. In reality, if there were an installment plan, people would feel relief and would use the money to pay their debts, but when accounts are blocked, they remain completely stagnant, causing a blockage in the economy. They cannot compete; the cost of inputs and rent makes it impossible for tradesmen to operate. For tradesmen to survive, this is crucial in terms of both employment and state tax revenue. Blocks should be lifted without wasting time.”
Additionally, Palandöken highlighted that it is becoming increasingly difficult for tradesmen to access financing, stating, “In the past, the low-interest loans specially provided by the government for tradesmen and artisans were lifelines. Tradesmen were able to settle their debts thanks to these loans. However, as is known, the attractiveness of these loans has diminished, making it even harder for tradesmen to access financing. Therefore, the restructuring law must be brought back to the agenda to help people get rid of their debts. With the restructuring, our tradesmen can stabilize their cash flow, achieve financial relief, and also revive the markets while creating an overall environment of trust.”