Minister Şimşek: Share of Indirect Taxes Drops to 62%

Emphasis on Justice and Efficiency in Tax Policies Treasury and Finance Minister Mehmet Şimşek, speaking at an event held for the 37th Tax Week, emphasized that taxation is a fundamental guarantee for the continuity of public services and social justice.
Highlighting Turkey's challenging geographical and economic context, Şimşek pointed out the importance of balanced and sustainable public finance.
Budget Discipline and Earthquake Expenditures Referring to last year's budget performance, Şimşek stated that despite earthquake-related expenditures and early retirement regulations, the budget deficit was kept below 3 percent of the national income.
He noted that staying below this threshold is a critical success for sustainability and that there will be no compromise on fiscal discipline.
Decrease in the Share of Indirect Taxes Regarding the transformation in the tax system, the Minister addressed tax expenditures, stating, "The share of tax expenditures in national income, which was 6.5 percent in 2023, fell to 5.1 percent last year.
We aim to reduce this rate to 4.1 percent or lower by the end of the Medium-Term Program (MTP) period." Combating the Informal Economy and Digital Transformation Şimşek reported concrete results in the fight against the informal economy, noting that the number of income tax returns rose from 3.8 million in 2022 to over 5 million in 2024.
He added that the number of income tax payers has exceeded 6.2 million, and discipline in auditing and collection has directly contributed to budget performance.
The Minister further stated that artificial intelligence and digital transformation will be used more effectively to increase efficiency in the coming period.
He concluded by saying that all processes from auditing to collection will be supported by algorithms, and the finance ministry will serve in a structure that is fair and provides guidance to taxpayers.