Turkey's Mehmet Şimşek reports economic growth and tax audit shifts

Turkish Treasury and Finance Minister Mehmet Şimşek has outlined the country's economic performance and the strategic roadmap for the 2027-2029 Medium Term Program. In the second quarter of 2023, the Turkish economy grew by 1.1% quarterly and 2.3% annually, supported by both domestic and foreign demand. The annualized national income exceeded $1.7 trillion, with the agricultural sector showing strong growth of 13.3% and industrial value-added increasing by 2.4% due to technology-driven developments.

Addressing concerns regarding tax fairness, Şimşek refuted claims that audits focus disproportionately on small businesses. He stated that for 2026, the audit rate for large companies rose to 31.3%, a significant increase from approximately 11% in 2024. Conversely, the audit rate for small companies decreased to 1.1%.

Şimşek emphasized a strategy of voluntary compliance over punishment, utilizing big data and artificial intelligence to identify discrepancies. The government's approach involves notifying taxpayers of findings to allow for self-correction before formal audits. The current fiscal strategy aims for price stability, technological transformation, and increased productivity to ensure long-term prosperity.