Economic stability: Türkiye to avoid tax increases, prioritize expenditure control

In a bid to maintain competitiveness and support the real sector, Şimşek has confirmed that there will be no hikes in VAT, corporate tax, or income tax rates.

Addressing last year's budget deficit, exacerbated by the earthquake, the government opted for targeted tax increases instead of market borrowing. However, measures such as raising VAT and SCT (Special Consumption Tax) were temporary and won't be repeated in 2024.

The Medium-Term Program (MTP) outlines a transparent taxation strategy, maintaining the general VAT rate at 20% and freezing corporate tax rates. While income tax remains stable, exceptions and exemptions will be reviewed to enhance efficiency and curb tax evasion.

Furthermore, the government is prioritizing expenditure control in the public sector to tackle inflation.

Minister Şimşek's statements underscore a balanced approach to economic stability and growth in Türkiye. (ILKHA)