Minister of Treasury and Finance Mehmet Şimşek stated that they attach importance to justice and efficiency in revenue policies and said, “Contrary to the perception in society, we reduced tax expenditures during the program period, reviewed the ineffective ones, and reduced tax expenditures compared to national income. We reduced the share of indirect taxes, which had been high for a long time, in total taxes from 66 percent to 62 percent.” he said.
Şimşek attended the event organized for the “37th Tax Week” at the Ministry of Treasury and Finance Conference Hall.
In his speech here, Minister Şimşek said that taxes are the guarantee of the power of the state, continuity in public services, quality, social justice and the future of the country.
Pointing out that Türkiye is in a difficult geography and conjuncture, Şimşek said that it is important for public finances to be balanced and sustainable in such a period and for expenditures to be financed mainly with tax revenues.
Şimşek pointed out that they showed a very strong performance last year and said, “We showed the performance of reducing the budget deficit to below 3 percent as a ratio of national income, despite the earthquake expenses and the early retirement system we had previously implemented. The budget deficit being below 3 percent is an important threshold for our country and sustainability.” he said.
Stating that extraordinary efforts were made last year and that its continuation is critical for them, Şimşek made the following assessment:
“We care about justice and efficiency in our revenue policies. Contrary to the perception in society, we reduced tax expenditures during the program period, reviewed the ineffective ones, and reduced tax expenditures in relation to national income. We reduced the share of indirect taxes, which had been high for a long time, in total taxes from 66 percent to 62 percent.”
Providing information about the regulations regarding taxes, Şimşek stated that the share of tax expenditures in national income, which was 6.5 percent in 2023, decreased to 5.1 percent last year, and that they aim to reduce it to 4.1 percent or below at the end of the Medium Term Program (MTP) period.
“NUMBER OF INCOME TAX PAYERS EXCEEDED 6.2 MILLION”
Emphasizing that they have achieved concrete results in the fight against informality, Şimşek said that the increase in the number of declarations is the most concrete indicator of this. Şimşek informed that the number of income tax declarations, which was 3.8 million in 2022, increased to over 5 million in 2024.
Pointing out that 473 thousand taxpayers filed their returns for the first time in 2025, Şimşek said, “Nearly half a million people filed their returns for the first time. During this program period, declaration-based taxes doubled every year despite the falling inflation. The number of income tax payers exceeded 6.2 million.” he said.
Şimşek stated that effectiveness in auditing also contributes greatly and that discipline in collection plays an important role in budget performance.
Pointing out that after a 2-year primary deficit, there was a transition to a primary surplus, albeit limited, last year, Şimşek emphasized that this is an important threshold that will limit the share of interest expenses in the budget in the coming years.
“TOGETHER WE WILL ACHIEVE BETTER”
Referring to the MTP targets, Şimşek said:
“Our MTP targets are ambitious, but I believe that together we will achieve much better. Our expectation is not only to meet the MTP targets in 2026 and beyond, but also to demonstrate a stronger performance. I expect us to go beyond this current performance and raise the bar a little higher.”
Drawing attention to digital transformation, Şimşek explained that it is important to implement artificial intelligence in a way that will increase efficiency in all areas. Şimşek stated that many processes, from audit to collection, should be supported with algorithms, and that existing algorithms should be improved and automation processes should be taken to a further stage in the fight against informality.
Emphasizing that respect for the taxpayer, constructive dialogue and guidance with the taxpayer are essential, Şimşek said, “You will be the fair, strong and guiding face of finance, not the frightening ones.” he said.
After Şimşek’s speech, a certificate of appreciation was presented to retired Deputy Chairman of the Revenue Administration Ayşe Dilbay, the employees who have completed 35 years, and the “best” personnel working in the Revenue Administration.
