Mehmet Şimşek's controversial minimum wage statement: 'Is this what you want?'

Treasury and Finance Minister Mehmet Şimşek evaluated the results of the Central Bank of the Republic of Turkey’s (TCMB) Survey of Market Participants.

In a post on his X account regarding inflation, Şimşek stated, "The path to price stability requires patience and determination. We continue to meticulously implement our program aimed at achieving disinflation."

Emphasizing that annual inflation, which was 48.6 percent in October, is expected to fall to 27.2 percent in 12 months according to the survey, Şimşek noted the following:

"While inflation expectations continue to improve for the 12-month horizon, there has been a limited increase in other maturities. The inflation data from the last two months played a role in the rise in expectations. Although they have improved significantly for a long time, it takes time for expectations to fall below a certain level. The path to price stability requires patience and determination. We continue to meticulously implement our program aimed at achieving disinflation."

According to the market participants survey, annual inflation, which was 48.6 percent in October, is expected to fall to 27.2 percent in 12 months.

While inflation expectations continue to improve for the 12-month horizon, there has been a limited increase in other maturities. The inflation data from the last two months played a role in the rise in expectations… pic.twitter.com/oC6y2lE54H

— Mehmet Simsek (@memetsimsek) November 16, 2024

CONTROVERSIAL MINIMUM WAGE STATEMENT

During the budget negotiations for his ministry at the Turkish Grand National Assembly (TBMM) Planning and Budget Committee, Şimşek had said regarding tax justice: "853 billion liras of tax expenditures stem from exempting the minimum wage from taxes. Should we impose taxes on the minimum wage? Is this what you want? 536 billion liras for investment incentives; should we not provide incentives? We are refraining from certain taxes for the sake of growth, employment, and export increases."

News Source: 12punto