The Role of economic pressure groups on the application of tax policies -The sample of Turkey-

ABSTRACT Pressure groups are groups organized for the purpose of affecting political power in order to secure their own interest in economic, social, political and even cultural matters. Presure groups may be also defined as organized interest groups trying to af fect the decisions of legislative body without getting hold of political power. As is un derstood from this definition, pressure groups and interest groups are diffirent con cepts, though they may be used sometimes in the same meaning. Pressure groups, as distinct from interest groups, cover the factor of affecting in their nature. There are several kinds of pressure groups. These groups may be classified ac cording to their internal structures, institutional characteristics, professional origins and ideological attitudes. Different pressure groups have different interests. Although the concept of "interest" normally reflects an economic meaning, pressure groups may have political, ideological, cultural, religous and ethical interests/ends as well. But, in this study, only economic pressure groups are examined, being ignored all other types. There are various factors determining the efficiency of pressure groups. Major factor of this kind are number of members, financial resources, organizational struc ture, social status, and political and systemic characteristics of the group. Pressure groups use different pressure methods according to their different characteristics. They may use not only the ways of persuasion, threat and strike, but also the methods like bribery, financial sabotage, and affecting the general public. The success and efficiency of the Goverment's economic policies are closely rela ted with the formulation and application of these policies realistically and decidedly. On the other hand, however, pressure groups aiming at maximizing their own interests will try to affect political decision-making bodies in order to reach their own ends, ir respective of the policies determined and the special conjuncture of the country. More specifically, the demand of pressure groups for public goods and services will affect political decision-making process and accordingly fiscal policy. Pressure groups try to affect or change law proposals or drafts relevant for themselves in the direction of their interests. In our study, there are selected examples of legislative arrangements in Turkey made in conformity with, or reflecting, the inte rests of the pressure groups. Examples of this kind may be found in the fields such as taxation of agricultural income, lump-sum taxation, wealth declaration, tax-free tran sactions in securities, and exceptions and exemptions in corporate taxes. V