Minister Şimşek makes statement concerning all taxpayers in Turkey

Şimşek stated that Turkey had a significant current account deficit a year ago, and that with the measures taken, the current account deficit has fallen from approximately 57 billion dollars to under 20 billion dollars. Minister Şimşek said, "The current account deficit is no longer a vulnerability or a source of concern."

Emphasizing that they will permanently remove the current account deficit as a source of concern, Şimşek said, "Additional measures are needed, but as of today, we are facing an external balance that is very easily manageable and is no longer a source of concern."

"WE ARE STRENGTHENING THE FOUNDATIONS"

Recalling that the lack of reserves was also a source of concern last year, Mehmet Şimşek stated that resolving this was one of their priority goals, and that an improvement of around 95 billion dollars had been recorded in net reserves as of last week.

Stating that the improvement in reserves is a reflection of the strong confidence in the program, Şimşek said, "There is very intense interest in the program both domestically and internationally. Therefore, Turkey has also removed the issue of reserves as a source of concern."

Expressing that there has been a tremendous improvement in access to external financing, Şimşek said, "We are strengthening the foundations for healthier, sustainable growth. There is a temporary slowdown in growth. However, Turkey's structure will strengthen. Our ultimate goal is sustainable high growth in Turkey. We will steer it back onto that path."

"INFLATION WILL FALL STRONGLY"

Stating that inflation in Turkey is still quite high, Şimşek expressed that inflation is expected to be between 40-42 percent this year, and is projected to fall below 20 percent next year and to single digits the following year. Şimşek continued as follows:

"The disinflation process has begun permanently. On one hand, with the delayed effect of monetary policy, inflation will fall strongly in 2025. On the other hand, fiscal policy and income policy will become more supportive. I would like to address business people here in particular; if you make your calculations accordingly, from your stocks to your pricing policy, you will not be on the wrong side. Inflation is coming down. Therefore, it would be to your advantage to take our targets into account. We drew a band for inflation this year, and we met many of our targets even in a difficult year where there was an election and geopolitical turmoil peaked. Our expectation from the business world is that they take the Medium-Term Program as a guide."

Stating that there is no inverse relationship between growth and inflation, Şimşek said, "While lowering inflation, we are actually laying the foundations for strong, high, sustainable growth. Therefore, do not let the temporary slowdown lead to pessimism."

"EVERY TAXPAYER IN TURKEY WILL BE..."

Treasury and Finance Minister Şimşek emphasized that they reduced the budget deficit to 5.2 percent with the measures they took last year, and that they aim to reduce the deficit even further.

Noting that they are making savings in addition to taking tax measures to reduce the budget deficit, Şimşek stated the following:

"From now on, we will prioritize the fight against the informal economy rather than increasing tax rates. The informal economy means injustice. Informality means lack of access to labor financing, low scale, and inefficiency. Therefore, we will fight against the informal economy for a fair competitive environment. If you are in the informal economy, know that the tax office will definitely knock on your door.

There will be tax avatars that will subject all taxpayers in Turkey to audits every year. Everyone's balance sheet, income statement, and cross-audit will be performed."

"WE WILL SIGNIFICANTLY REDUCE EXTERNAL VULNERABILITIES"

Stating that they will lower inflation thanks to budget discipline, Şimşek said, "There is a tremendous improvement in the current account deficit, but we are initiating a structural transformation process to make this permanent. Here, of course, natural gas and oil production in Turkey will reduce our current account deficit. Progress in this area, green transformation, and the new industrial policy will perhaps take Turkey from a current account deficit to a current account surplus. We will significantly reduce not only inflation but also external vulnerabilities."

Pointing out that Turkey has a very strong story, Şimşek said, "We are on the eve of a strong structural transformation in Turkey. Structural transformation means opportunity, it means growth. Therefore, it is very clear that one needs to be a part of this story."