The ruling party in Turkey sent a bill to parliament on Monday that would increase the minimum pension by 2,500 lira to 12,500 ($378.05) a month and, as expected, impose a minimum corporate tax on large multinational companies, News.bg reported.
The government previously said there were no plans to increase this year's minimum monthly contribution of 10,000 pounds per pensioner, citing wider plans to tighten fiscal policy and austerity. designed to curb rising inflation.
But with annual inflation above 71% last month, prolonging a long-standing cost-of-living crisis for Turks, the main opposition party has been calling for increases in both pension payments and the minimum wage, which is being held stable since January.
Under the draft law proposed by President Recep Tayyip Erdogan's Justice and Development Party, only the minimum pension payment will increase to 12,500 liras, with no increase for pensioners who earn more.
About 3.7 million of Turkey's 15.8 million pensioners receive the minimum monthly pension, Justice and Development Party parliamentary group chairman Abdullah Güler said as he unveiled the latest savings plan.
Annual inflation fell to 71.6% in June from a peak above 75% in May, beginning what is expected to be a sustained decline to around 42% by the end of the year. The central bank has kept its key interest rate at 50% in recent months after an aggressive tightening campaign.
The bill also includes new savings plans aimed at strengthening fair taxation, including a minimum corporate tax.
A minimum 15% corporate tax will be imposed on multinational companies that have more than 750 million euros ($817.58 million) in annual consolidated revenue, according to the draft law, confirming earlier comments by the finance minister .
The plan also raises the corporate tax rate for companies that manage public-private partnership projects, including new bridges and highways, to 30% from 25%.