Minister Şimşek Shares Tax Data: Share of Indirect Taxes Drops to 62%

Emphasis on Justice and Efficiency in Tax Policies Treasury and Finance Minister Mehmet Şimşek emphasized the importance of justice and efficiency in income policies during a speech at an event held for Tax Week.
Stating that taxes are the guarantee of continuity, quality, and social justice in public services, Şimşek noted that financing expenditures primarily through tax revenues is critical for sustainability.
Share of Indirect Taxes Decreasing Minister Şimşek stated that, contrary to public perception, they have reduced tax expenditures and reviewed inefficient items during the program period.
Announcing that the share of indirect taxes, which had been high for a long time, was reduced from 66% to 62%, Şimşek reported that the share of tax expenditures in national income fell from 6.5% in 2023 to 5.1% last year.
The goal is to reduce this ratio to 4.1% or lower by the end of the Medium-Term Program (MTP) period.
Budget Performance and Combating the Informal Economy Pointing out that budget performance remains strong despite earthquake-related expenditures and early retirement regulations, Şimşek stated that the budget deficit was kept below 3% of national income.
Following two years of primary deficits, the Minister noted that a limited primary surplus was achieved last year, which will limit the share of interest expenses in the budget in the coming years.
Increase in the Number of Taxpayers Şimşek highlighted concrete results in the fight against the informal economy, pointing to the increase in the number of tax returns.
The number of income tax returns, which was 3.8 million in 2022, rose to over 5 million in 2024, with approximately 473,000 taxpayers filing for the first time in 2025.
Stating that the number of income taxpayers has exceeded 6.2 million, Şimşek emphasized that audit and collection discipline played a critical role in budget success.
He added that they would maintain fiscal discipline in 2026 and beyond by remaining committed to program targets.