Report: Six CHP-run municipalities face seizure for outstanding payroll taxes

The Labor and Social Security Ministry has imposed a seizure on six municipalities governed by the main opposition Republican People’s Party (CHP) due to unpaid premium debts to the Social Security Institution (SGK), several media reports said on Dec. 16. However, Ankara and Istanbul municipalities denied the seizure.
The action on municipalities in Adana, Ankara, Istanbul, İzmir, Mersin and Istanbul's Şişli district had their deposit accounts frozen local media reported.
Ankara Municipality leads the list with the highest premium debt to SGK, totaling 5.7 billion Turkish Liras, followed by İzmir with 5.3 billion liras and Istanbul with 3.3 billion liras. Adana ranks fourth with 3 billion liras, Şişli fifth with 1.8 billion liras and Mersin sixth with 1 billion liras.
Istanbul Municipality, however, denied claims that a specific account was seized.
In his speech during a parliamentary discussion in November, Labor and Social Security Minister Vedat Işıkhan said the total debt of municipalities to SGK has risen to 160 billion liras, or roughly $5bn, less than 0.5% of GDP.
"This increase has become an unsustainable burden," he said.
On the other hand, opposition media claims that AKP-run municipalities have bigger outstanding debts to the Social Security Administration. Other CHP municipalities also under threat of punitive action for outstanding debts to state institutions claim these were accumulated by their AKP predecessors.