Law on austerity measures in public sector adopted by Parliament

The Turkish Parliament approved the initial section of a bill focusing on public saving measures.

The approved provisions address the Constitutional Court’s decision on “Treasury aid from the general budget” concerning the Turkish Standards Institute’s (TSE) revenues. These provisions will be integrated into the Law on Some Arrangements Concerning the Turkish Standards Institute.

Authority to privatize vehicles and machinery

The bill grants the Privatization Administration authority to sell vehicles and machinery defined under the Highway Traffic Law and transferred to the Ministry of Environment, Urbanization, and Climate Change. Sales will be conducted comprehensively and quickly based on specified principles and procedures.

Necessary consultancy services will be acquired according to the Privatization Applications Law, with expenses covered by the Privatization Fund. Costs will be deducted from the sale proceeds, and the remaining amount will be transferred to the relevant accounts of the Treasury and Finance Ministry or the corresponding institution’s accounting unit. These amounts will be recorded as revenue to the general budget or respective public institution’s budget.

Stamp tax exemption for investment contracts

A change in the Stamp Tax Law will exempt investment contracts between the Minister of Industry and Technology and investors, which include investment incentives, from stamp tax, similar to incentive certificates. This exemption will be effective from July 1, 2024, upon the publication of the regulation.

Revision of higher education law

The provision in the Higher Education Institutions Organization Law, annulled by the Constitutional Court, is being revised. This revision will establish faculty positions in universities in accordance with the annulment rationale.

BOTAS and TPAO provisions

The Natural Gas Market Law amendment allows BOTAS to offset its unpaid taxes, funds, shares, and administrative fines from its receivables from the Treasury. The Treasury and Finance Minister will determine and execute the offsetting process without accruing additional receivables.

Following the Constitutional Court’s decision, any natural gas procurement by BOTAS will be exempt from the Public Procurement Law. Procedures for procurement will be established by the president in accordance with market conditions, confidentiality, reliability, and efficient resource use principles.

Procurement methods, announcement and invitation periods, and procedures for BOTAS and TMO will be regulated by management regulation issued by these institutions, based on fundamental principles. Procurement processes can be partially or fully conducted via the Electronic Public Procurement Platform (EKAP).

An AK Party proposal has been approved to exempt the Toprak Mahsulleri Ofisi (TMO) from monetary limits under the Public Procurement Law for agricultural product purchases and related services.

Disciplinary measures for non-compliance with new savings law

Disciplinary measures will be applied to those found in violation of new savings law amendments during audits by public institutions or the Ministry of Treasury and Finance.

The results of the actions taken against the identified individuals will also be reported to the Presidency.