Mehmet Şimşek Announced: There Will Be No Increase in VAT and SCT

Minister of Treasury and Finance Mehmet Simsek, made important statements to TRT Haber about the issues on the economy’s agenda. Especially in Şimşek’s statements taxes, inflation and focused on the processes we will encounter in the economy. Minister Şimşek also said that there was no option other than reducing inflation to single digits.

Şimşek’s statements “Economic growth is strong, this is encouraging, but the important thing here is to improve the quality of growth.”“, he said that the two main engines of growth in the coming period are productivity increase and the efficient channeling of existing opportunities. He said that growth will most likely slow down slightly in the coming period. Minister Simsekwhat is important From the MTP perspective He said that it is about entering a sustainable growth path. Şimşek also stated that they aim to increase the ratio of broad reserves to debt with one year remaining to maturity to 1.

Here are the highlights from Şimşek’s statements

Stating that the existing programs are working and have internal consistency, Şimşek stated that the trust in the program is increasing both inside and outside. Stating that capital inflow has started, Şimşek said, During June-September He announced that there was a net increase of 5 billion dollars.

Resource inflow will increase in 2024

Minister Şimşek also stated that starting from the second half of 2024 Resource inflow to Turkey will increase he stated. Stating that the situation of banks has improved, the Minister said that the effort to reduce inflation to single digits will also positively affect foreign direct investment.

done in the past VAT and SCT Referring to tax increases such as those that increase inflation, Şimşek stated that these tax increases will not be repeated. Stating that this system will be exited next year, Şimşek also said that receiving authorization for taxes up to 40 percent does not mean that these taxes will be implemented. According to Şimşek, taxes can be used as a tool to strengthen the lira.

“We have no option other than single digit inflation”

In Şimşek’s statements “We have no choice but to reduce inflation to single digits. We are determined to do this. In the short term risk of slowing down growth We have to take it and do it. The slowdown in monthly inflation will continue.” said. In pricing behavior Stating that there is a serious deterioration, the Minister stated that it would be beneficial for business people to base themselves on the OVP.

Exchange Rate Protected Deposits in mid-August 3.4 trillion lira Minister Şimşek said that the tax incentive on KKM, which decreased to 2.8 trillion in mid-November, will be removed when the reserves reach the desired point.