Turkey's ruling party submits bill on tax regulation

Turkey’s ruling Justice and Development (AK) Party submitted on Thursday a new draft law to the parliament, which proposes regulations on the tax system.

The bill aims to collect "more tax from those earning more and less from those earning less," Mehmet Mus, AK Party's deputy chairman, told reporters in the parliament.

The draft law proposes new taxes -- namely valuable house tax and accommodation tax.

"If the draft law passes, people having a house worth between 5-7.5 million Turkish liras ($862,000-$1.300 million) will pay 0.3% tax,” he said.

The official added that 0.6% tax will be applied on houses worth between 7.5 million Turkish liras and 10 million Turkish liras ($1.724 million), and houses worth over 10 million Turkish liras will be taxed with 1%.

The draft law also offers to raise the maximum income tax rate to 40% from 35%, he said.

On accommodation tax, Mus said it will be applied 2% on the revenue and will be paid by in-house guests.

Mus said that they will also lift the tax exception on referees.

"The stoppage collected from the athletes’ revenues will be raised to 20% from 15%," he added.

The draft law will be first debated in the parliament's planning and budget committee.

The parliament speaker’s office has not defined the exact debate schedule of the draft law.