16.12.2025 06:15
The budgets of the Ministry of Interior and the Ministry of Treasury and Finance for the year 2026 were approved in the General Assembly of the Turkish Grand National Assembly. Responding to questions from deputies in the Assembly, Minister of Treasury and Finance Mehmet Şimşek strongly denied the claim that tax debts were erased. Minister Şimşek stated, "No authority or institution outside our Supreme Assembly can erase tax debts. The Ministry of Finance or the Ministry does not have the authority to erase or forgive tax debts."
The budgets of the Ministry of Interior and the Ministry of Treasury and Finance for the year 2026 were approved in the General Assembly of the Grand National Assembly of Turkey (TBMM). After the speeches on the budgets in the General Assembly, the question-and-answer session was held.
"NO AUTHORITY CAN WAIVE TAX DEBTS OUTSIDE OF TBMM"
Responding to the questions and criticisms of the members of parliament, Minister of Treasury and Finance Mehmet Şimşek stated the following regarding the claims that tax debts were waived: "No authority or institution can waive tax debts outside of our Supreme Assembly. I have never had such authority, nor do I want it. The Ministry of Finance or the Ministry has absolutely no authority to waive or forgive tax debts. All exemptions related to taxes are regulated by laws as required by the Constitution. There can never be any tax exemptions or exemptions that are not regulated by laws. If you are referring to tax expenditures, all of them are regulated by law. For example, the cost of excluding the minimum wage from taxes in 2026 is 1.1 trillion lira. Do you want to impose tax on the minimum wage? No. We have removed the tax on the minimum wage. This is a tax expenditure. Of course, our government and our Assembly removed it. Therefore, it is absolutely impossible for tax debts to be waived."
"THE QUALITY OF RESERVES HAS INCREASED RECENTLY"
Pointing out that the reconciliation institution has been implemented by all governments since 1963, Şimşek stated that last year, despite the reports being faulty and problematic, a legal amendment was made stating that the principal tax would not be subject to reconciliation. Şimşek emphasized that the quality of reserves has increased recently, highlighting that the increase in reserves is not due to "carry trade," stating, "The total of all carry trade, that is, the swap stock, is around 20 billion dollars. This is one-sixth of the 123 billion dollar increase. Reverse dollarization, high external debt rollover rates, export revenue sales obligations, gold prices, and decreasing current account deficit have all contributed to the increase in reserves. Especially by closing foreign and domestic swaps, our reserve quality has improved." he stated.
"THE NUMBER OF VEHICLES IN THE PUBLIC SECTOR HAS DECREASED BY 1161"
Emphasizing that the number of vehicles in the public sector has decreased by 1161, excluding defense, security, health, and disaster management, Şimşek stated that the number of vehicles re-leased after the publication of the savings circular has also been reduced by 19%. Şimşek noted that the savings measures regarding vehicles have been fully implemented and that they have achieved results. He pointed out that the claims that "a penalty quota has been imposed in inspections" are absolutely not true, stating, "We have never had such an instruction, nor will we. We always tell our tax audit units: 'Please provide guidance, show the way. If there are deficiencies, let’s not impose penalties, let them go and correct their declarations. Because our aim is to increase voluntary compliance.' Therefore, such a thing cannot be the case." he evaluated.
Minister Şimşek recalled that they took many measures to reduce the impact of the earthquakes centered in Kahramanmaraş on taxpayers and immediately declared a state of force majeure after the earthquake, explaining the practices they implemented in this context.
"NEITHER I NOR MY TEAM HAS INTERFERED WITH TURKSTAT"
Şimşek provided information that the path of force majeure is open to all taxpayers who are still affected by the earthquake, stating, "Current tax debts have been restructured interest-free for 24 months, and even no collateral is required up to 250,000 lira. We will provide all kinds of convenience in other matters as well." he said.
Şimşek pointed out that many evaluations regarding the Turkish Statistical Institute (TÜİK) were made during all budget discussions, and continued his remarks as follows: "First of all, I want to make it clear: Neither I nor my team has ever interfered with TÜİK, nor have I ever given an instruction regarding this, nor will I. Because we want the data to be accurate. Let’s make the diagnosis and treatment correctly based on that. TÜİK statistics are calculated using methods, definitions, and concepts determined by international organizations such as Eurostat. Therefore, our data is produced in cooperation with many organizations such as the United Nations, IMF, OECD, ILO, and is open to their audit."
After the speeches, in the voting held, the budgets of the Ministry of Interior and the Ministry of Treasury and Finance, as well as the budgets of the General Directorate of Security, the General Command of Gendarmerie, the Coast Guard Command, the Directorate General of Migration Management, the Disaster and Emergency Management Authority, the Revenue Administration, the Turkish Statistical Institute, the Privatization Administration, the Capital Markets Board, the Banking Regulation and Supervision Agency, the Public Procurement Authority, the Public Oversight, Accounting and Auditing Standards Authority, and the Insurance and Private Pension Regulation and Supervision Agency for the year 2026 were approved. TBMM Deputy Speaker Pervin Buldan adjourned the meeting to reconvene tomorrow at 11:00 AM.