1- The seven progressive tax brackets for salaries, wages, and pensions will be increased under the

new public budget without modifying the applicable tax rates, and these brackets will be applied
retroactively beginning on January 1, 2022, which will have an impact on both employees and
employers.
2- The effects on private and public employees include that individuals who received increases or
received part of their compensation in new dollars would pay higher taxes in both lira and
dollars despite the fact that their buying power is declining owing to inflation in both currencies.
3- Employers may be impacted by these taxes since the tax rates retroactively apply, possibly
skyrocketing their payroll taxes as well as the taxes paid by employees in the private sector, who
nevertheless have to contend with rising living expenses.
4- It may be required to evaluate and restructure the whole tax system in order to make it more
fair, balanced, and sustainable in order to make these tax initiatives more effective. This would
entail closing tax shelters and exemptions, doing away with fraud and tax evasion, extending the
tax base beyond paid workers, and enacting progressive tax laws that hit the rich and deal with
income disparity. The government might increase income, encourage economic expansion, and
advance social fairness in this way.