Nicosia, Cyprus. Turkish Cypriot ‘prime minister’ Unal Ustel on Monday handwrote a draft bill to cut Turkish Cypriot ‘MPs’ salaries by 10 per cent during a session of the Turkish Cypriot legislature.
Debate on inflation and disposable income
Members discussed the rising cost of living and issues related to income equality, with opposition party CTP member Devrim Barcin citing year-on-year inflation of food prices of 40 per cent over the last year.
Barcin said that given the high rates of inflation, “increases in gross salaries mostly end up being paid as tax in the end”, and accused the ruling coalition of “taking money from the right pocket and putting it into the left”, arguing that Turkish Cypriots’ disposable income has not increased due to higher tax payments.
He said tax rates should be reset at least once a year, rising in line with inflation, and said the coalition had not accepted proposals he had made to this end, while a committee formed to review tax rates “has not even met once”.
“Today, whether in the public or private sectors, an employee with a gross income of 100,000TL [€1,870, monthly], and a person with a gross income of 400,000TL [€7,478], should not both pay income tax at a rate of 37 per cent,” he said.
Ustel calls for committee meeting and annual reset
Ustel responded by saying he will ensure the committee convenes on Wednesday, and called on all members of the legislature to “immediately” support plans to reset tax rates once a year.
Proposal to cut politicians’ salaries
Ustel said “everyone’s eyes are on the politicians”, adding that “the people who receive the highest amount of the cost-of-living allowance are the politicians, the undersecretaries, and the political officers”.
He said unions have called for politicians to be the first to “pull their weight”, and proposed cutting 10 per cent from politicians’ salaries.
Ustel asked a clerk for a piece of paper and said, “I shall be the first to sign here”, before drafting a bill as he continued his speech. He said he would sign the proposal first and then expect the second signature to come from Barcin, before showing the signed paper to his 48 fellow members of the legislature.
What do you think should be the priority in addressing inflation and income inequality?