Finance Minister Mehmet Simsek: “Will there be tax increases after the elections?”
Speaking about allegations of tax increases after the elections, Minister of Treasury and Finance Mehmet Şimşek stated, “There will be no general increase in VAT, corporate, and income tax rates. We haven’t even considered a new regulation regarding motor vehicle tax.” Minister of Treasury and Finance Mehmet Şimşek made statements on Habertürk TV and Bloomberg HT joint broadcast.
Addressing the allegations of additional taxes, Şimşek said, “We won’t surprise citizens, markets, or the business world. We will implement the vision in the Medium-Term Program (OVP). We will review tax exemptions. There will be no increase in VAT, income tax, or corporate tax rates. There will be no regulation in motor vehicle tax.”
“WE WON’T SURPRISE THE BUSINESS WORLD”
Highlights from Minister Şimşek’s statements are as follows:
“We won’t surprise citizens, markets, or the business world. We will implement the vision in the Medium-Term Program (OVP). We will review tax exemptions. There will be no increase in VAT, income tax, or corporate tax rates. There will be no regulation in motor vehicle tax.
There are numerous allegations causing insecurity in the markets, putting forward many claims regarding the election. You can ask our press advisors about these claims. Their intentions are bad. Apart from combating informal economy, and reviewing some exemptions, we don’t have any special efforts.
FOREIGN EXCHANGE RATE STATEMENT
We don’t have a target exchange rate, and there won’t be. In the Monetary Policy Committee (DDM), the Central Bank is present in the market. Apart from that, we don’t intervene.
Expectations of the lira’s depreciation after the elections don’t seem meaningful. The current account deficit is decreasing. Our need for foreign exchange is also decreasing. When the current account deficit reaches around $30 billion, it means a 2.5-3% ratio. If we finance one point of it with direct investments, we will have reserve accumulation.”
