Minister Şimşek gives a clear response to claims about his illness.

07.11.2025 12:38

The Minister of Treasury and Finance, Mehmet Şimşek, answered the questions of the members of parliament after the budget discussions in the TBMM Planning and Budget Commission. In response to claims about his health, Şimşek stated, "I currently have neither a chronic illness nor a condition that requires close monitoring. Until today, I have had no considerations other than serving my country."

The Minister of Treasury and Finance, Mehmet Şimşek, answered the questions of the members of parliament after the budget discussions of his ministry and its affiliated institutions for the year 2026 in the TBMM Planning and Budget Commission.

Emphasizing that the reconstruction of the earthquake zone is the top priority, Şimşek stated that there has been a spending of 3.6 trillion lira, which is over 90 billion dollars, based on accrual from the budget so far at 2025 prices. Şimşek mentioned that they implemented all necessary measures in the region immediately after the earthquake disaster centered in Kahramanmaraş, stating, "The law regarding the state of force majeure was changed and extended last year, as you know. We used all the possibilities for extension, so it will end on November 30. But I want to emphasize this: firstly, those affected by the earthquake will benefit from the state of force majeure even if it ends, provided they can prove their situation. The second issue is that we have made it easier regarding collateral; we have removed the collateral requirement up to 250,000 lira." he said.

"WE DO NOT FIND IT RIGHT TO REWARD THOSE WHO DO NOT PAY THEIR TAXES"

Responding to the questions of the members of parliament regarding the tax amnesty, Şimşek said: "Regulations were made in previous periods. Generally, there was no reduction or cancellation of tax principals in the regulations. Only late fees and penalties were updated at the inflation rate. It is very clear that the restructuring disrupts tax compliance. If our taxpayer presents their balance sheet and income statement and shows that they are in difficulty, we will gladly allow installment payments. In this sense, the restructuring is open to everyone in difficulty. There is no legal regulation on our agenda for this. We do not find it right to reward those who do not pay their taxes on time."

"WE WILL TAKE ADDITIONAL MEASURES IN LABOR-INTENSIVE SECTORS"

Şimşek stated that they are aware of the difficulties in labor-intensive sectors such as textiles, furniture, leather, clothing, and footwear, and emphasized that they will not ignore these difficulties. Reminding the steps taken, Şimşek said, "We are still working on the problems of labor-intensive sectors. We will take additional measures. We will continue to support our production and employment in the strongest way possible. We have no doubts about that."

Evaluating the economic program, Şimşek stated, "The budget deficit decreased from 5.1% last year to 4.7%. This year, it will likely be around 3.5-3.6%. Therefore, the budget deficit is decreasing. In this sense, the program is working. Currently, the current account deficit is no longer a source of concern. If the program were not working, why would credit rating agencies raise our rating? We faced many shocks this year. Nevertheless, the program proved its worth and it became clear that we are resilient. I don't even want to ask what inflation would be if we hadn't implemented this program."

"4,567 COMPANIES HAVE APPLIED FOR CONCORDAT IN 2.5 YEARS"

Indicating that there are difficulties in the real sector similar to those around the world, Şimşek reported that 4,567 companies have applied for concordat in approximately 2.5 years. Şimşek continued: "The share of these companies in turnover is 0.89%, in exports is 0.85%, and in employment is 0.73%. Declaring concordat does not mean bankruptcy. Courts should provide this opportunity to companies that normally have a chance to survive. Currently, the follow-up rate of commercial loans is 1.8%. The 10-year average is around 3%. We are currently well below that."

Şimşek reported that as of September 2025, the ratio of bad checks to total issued checks is 2.8%, which is above the last 12-year average of 2.5%. He emphasized that they have taken facilitative steps regarding access to finance and that this will continue, stating that Eximbank will provide 53 billion dollars in credit to exporters this year, a significant portion of which includes nearly 50% interest subsidies.

"YOU CANNOT MAKE A CAPITALIST OUT OF ME"

Şimşek, referring to the reduction of tax expenditures, emphasized that 1 trillion 92 billion lira of tax expenditures in 2026 will result from excluding the minimum wage from taxation. Şimşek stated: "Do you want tax on the minimum wage? One-third of tax expenditures is due to the exclusion of the minimum wage from taxation. You do this to encourage investment, production, and exports. You do this for employment. The total of these amounts to 641.5 billion lira. The share allocated for supporting disadvantaged groups, especially individuals with disabilities, education, health, culture, and sports activities is approximately 265 billion lira. The share allocated for supporting farmers' agricultural activities is 262 billion lira. Should we increase the taxes on our farmers? Should we also tax feed and fertilizer? These are the tax debts you say are being canceled. Because outside of this, tax debts cannot be canceled; all of these are done by law, and I have no intervention in any of them."

Minister Şimşek stated, "You cannot make a bourgeois capitalist out of me, friends, it is impossible. Look, I am the one who increased the corporate tax by 5 points, I am the one who raised the banks' tax from 20% to 30%, I am the one who increased the banks' fees by 50%, I am the one who introduced a minimum corporate tax in the domestic market, I am the one who introduced a minimum corporate tax for global companies. I am the one who removed the 50% capital gains exemption on real estate sales. I am the one who reduced the exemption on the sale of shares in subsidiaries. I am the one who increased the withholding tax on dividends from 10% to 15%. Currently, up to 6-month maturities, funds and deposits constitute 95% of the total. We increased their tax rate to 17.5%. If I am a rentier, if I represent global capital, how can I increase the interest on deposits from 5% to 17.5%? You cannot make a capitalist out of me. I am here to provide public service."

"WE ARE OPEN TO MAKING ALL KINDS OF FACILITIES FOR THOSE WHO SHOULD REMAIN IN SIMPLE ACCOUNTING"

Şimşek emphasized that he did not say such a thing regarding the claims that "wages cause inflation" and that in that statement, he meant that the budget deficit would be inflationary. Responding to claims that a 1% special consumption tax (ÖTV) is applied to high-alcohol beverages, Şimşek stated that the ÖTV on some products in this group is at the level of 39.8%, and when VAT is added, the total taxes reach 56.5%. Şimşek stated that efforts are being made to eliminate unfair competition, that simple accounting does not automatically transition to real accounting, and that there are rules, emphasizing that they are open to making all kinds of facilities and regulations for those who should genuinely remain in simple accounting.

"I HAVE NO CHRONIC DISEASES OR DISEASES REQUIRING CLOSE MONITORING"

Şimşek pointed out that the income tax amount they will collect in 2025 is 2.8 trillion lira, stating that this is low according to international comparisons.

Şimşek, stating that they keep all wages tax-free up to the minimum wage, said, "Now you asked, 'Why don't you increase these tax brackets?' We have increased it in the revaluation rate, and we will continue to do so."

Şimşek stated that they will continue to do their best to ensure that workers receive the fruits of their labor. Highlighting the value of the "500 thousand social housing" project, Şimşek said, "We will sincerely support it. Because for 500 thousand social housing, a rent or a fee will be paid according to income, not rent. It will truly be within the framework that our minimum wage earners, retirees, and civil servants can afford 500 thousand houses."

RESPONSE TO CLAIMS OF ILLNESS

Regarding the claims of his illness, Şimşek stated, "I currently have neither a chronic illness nor a disease that requires close monitoring. Until today, I have had no other considerations than serving my country."

Following the discussions, the budget for the Ministry of Treasury and Finance for the year 2026, as well as the budget, final accounts, and Court of Accounts reports of the Revenue Administration, Turkish Statistical Institute, Privatization Administration, Capital Markets Board, Banking Regulation and Supervision Agency, Public Procurement Authority, Public Oversight, Accounting and Auditing Standards Authority, Insurance and Private Pension Regulation and Supervision Agency, and the Court of Accounts reports of the Central Bank of the Republic of Turkey, Investor Compensation Center, and Interbank Card Center Inc. were accepted.