‘Good news’ from  VP Cevdet Yılmaz: ‘No additional tax until the end of the year’

Vice President Cevdet Yılmaz, arguing that the main factor in tax increases is the earthquake, stated that there will be no additional tax increase until the end of the year. Yılmaz noted that the expiration of the currency-protected deposits is not on the agenda for now.

Vice President Cevdet Yılmaz said that they want to put forward a program that increases predictability with the Medium Term Economic Program (MTP). Noting that no additional tax increase is planned until the end of the year, Yılmaz informed that the Treasury is conducting the necessary negotiations on promised Gulf investments ($8 bn sukuk and a $3.5 bn loan to Turkish Ex Im Bank promised by ADQ), promising “We expect these to happen quickly.”

Stating that the exchange rate has settled on a more stable ground in line with the measures taken, Yılmaz said, “It is not a mechanism to be abandoned immediately” for FX insured deposit scheme (KKM).

The highlights of Vice President Cevdet Yılmaz’s statements, who answered Ahmet Ergen’s questions on NTV live broadcast, are as follows:



In line with the agreement signed with the United Arab Emirates, there will be 3 billion dollars for export financing and 8.5 billion dollars for earthquake financing. The Treasury is conducting the necessary negotiations. We expect these to happen quickly. The highest defense industry agreement in our history was signed with Saudi Arabia. The most important is the agreement with the UAE, which has been finalized.

We went through a period of rising energy prices, which sapped Central Bank FX reserves. Now, serious funding base was created in the Gulf countries. They intend to evaluate numerous  investment opportunities in different countries of the world. Their interest in Turkey will provide advantages in terms of foreign exchange inflow and direct investment that Turkey needs.

There will be FDI inflows to project-based investments. Turkey has a tremendous investment potential in energy. Energy constitutes a significant part of our current account deficit. It definitely needs to attract more international capital here. It will contribute to our macroeconomic stability by reducing our current account deficit.


Thanks to our President, Türkiye has made a serious breakthrough in the defense industry. We will reach our export target of 10 billion dollars before 2028. Gulf countries are also a part of it.



We experienced the biggest disaster in our history affecting 11 of our cities. The main factor in tax increases is earthquake. Inflationary effect increases both your expenses and incomes. The state has recently subsidized energy prices. As public expenditures increase, revenues must also increase. Promised wage and pension  increases also impaired budget discipline. But the weighted factor is the earthquake effect. In a few years, we will finish these. The state will also make sacrifices to achieve sustainability in the budget. Our President has an executive order for austerity in public service, which is still in effect. Additional austerity measures were requested until the end of this month. Saving does not mean using resources, it means using resources efficiently.


As of now, we have established a balance in the budget. We increased the corporate tax by 5 points. We increased 1 point for exporters. Will there be a proposal for tax increase to the Assembly after this? This is at the discretion of our Assembly. We have made the changes we envisioned. Except for the taxes that will be updated automatically, there is no situation to discuss an additional tax or an additional tax until the end of the year. We are of the opinion that we have taken the necessary measures within the framework of the budget for this year.

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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and www.paraanaliz.com and has contributed to the financial daily Referans and the liberal daily Radikal.