Referring to this medium-term economic program, Şimşek noted that Turkey is the first country to unveil its program to overcome the ongoing global financial crisis. He cited the drop in interest rates to one digit as an important development for the economy. Stressing that they will comply with the program as much as possible, the minister noted that the 2010 budget would also be prepared in accordance with the program. He said they wanted to decrease the budget deficit to about 3 percent of gross domestic product (GDP) in the coming term.
In regards to the tax incentives that ended last week, Şimşek noted that temporary tax cuts implemented in a number of sectors have stimulated these sectors by boosting sales. The cost of these incentives was TL 2.5 billion to the government in the first quarter and TL 1.1 billion in the last quarter, the minister said, adding that “now there is a slight recovery in the economy, and we expect this to continue in the forth quarter, too.”
Şimşek stated that they have been working more proactively to promote the wealth amnesty program in the second term. During the first term, the wealth amnesty program returned a total of TL 14.8 billion to the country, the minister said, adding that this figure was TL 3.9 billion as of the end of September for the second term of the program. Of this amount TL 3 billion came from inside the country and TL 900 million from abroad, he added.
Asked about the alleged politicization of taxation in reference to the record fine levied on Doğan Yayın Holding for tax evasion, Şimşek denied this accusation. He explained that no group is exempt from taxation in Turkey and that everyone should pay taxes proportionate to their income. Şimşek also said civil servant wages would be reflected in the 2010 budget as was offered during the collective bargaining process. The government had offered a 5 percent hike for 2010, which will be implemented in two six-month increments.
