Minister Nebati: SCT reduction in automotive sector is not on the agenda

Minister of Treasury and Finance Nureddin Nebati said that a reduction in the Special Consumption Tax (SCT) in the automotive sector is not on the agenda at this stage and that they are not conducting any such work as a ministry. Stating that they will share the details of a unique model for real estate in the upcoming period, Minister Nebati stated that the work is particularly focused on support for the access of the middle and lower income segments to housing. While the expectation for a reduction in the special consumption tax (SCT) in the automotive sector remains lively, Minister of Treasury and Finance Nureddin Nebati stated that there is no such work on the agenda. Answering questions from journalists after the press conference held for the introduction of the Yeni Yüzyıl İzmir Economic Congress, Nebati said that a reduction in the Special Consumption Tax (SCT) in the automotive sector is not on the agenda at this stage and that they are not conducting any work as a ministry. Nebati made statements to journalists on many issues ranging from inflation and budget performance to foreign economic relations. Minister Nebati said that despite the elections to be held next year, Turkey will never compromise on its budget discipline and that they expect to close the year with a better performance than the targeted 3.4 percent for the ratio of the budget deficit to national income. Making evaluations regarding one-year performance in line with the Turkish Economic Model, Nebati said, “We are beyond our targets except for inflation. The only thing that tires us is inflation. Hopefully, this month, we will close the year in the 65 percent band, which is our year-end inflation target.” Drawing attention to the decrease in energy prices, Minister Nebati said, “In an environment where container costs are normalizing, expectations are broken, and volatility in foreign exchange prices is minimized, our expectation regarding inflation is for it to follow a rapid downward trend next year.” “Our talks with the UAE, Qatar, Kuwait and other countries continue” Also touching on the developing relations with Saudi Arabia, Nebati said, “We will also take steps towards accelerating and gaining momentum by going to Saudi Arabia with our business world in March. Our communication and talks continue not only with Saudi Arabia, but also with the United Arab Emirates, Qatar, Kuwait and other countries. “Both the normalization with Israel and our communication with the countries in the Mediterranean and the European Union show that the upcoming process is not limited to the Gulf and will be comprehensive,” he said. Stating that credit financing support is good thanks to the strengthening of bilateral relations in the region, Nebati said that it comes from the Gulf in the form of a warehouse account and not a swap. “The timetable for the new KGF package has been clarified” Also speaking about the Treasury-backed KGF package, Minister Nebati underlined that the timetable has been clarified, that they will share the details of the KGF package, which has a total of 14 headings, next week, that they will make it available for use as of January, and that they will never allow the loans to be used for purposes other than their intended purpose. He also said that with the new KGF package, support will be provided to employers in severance pay payments within the scope of EYT. “Details of the new model for real estate will be shared” Stating that they will share the details of an original model for real estate in the coming period, Minister Nebati stated that the work is especially on support for middle and low-income segments to access housing. Stating that they did what was necessary by examining 105 thousand taxpayers in the previous housing loan, Nebati said, “Before concluding our work here, we completely scrutinized the real estate market. If there is any speculative or manipulative transaction, all their information and records are under our surveillance. We followed up very closely. We will never allow manipulation. We are monitoring everyone’s data.” “We are ready to provide the necessary support on EYT” Minister of Treasury and Finance Nebati said, “We held meetings with our Ministry of Labor regarding EYT. We will be strong on the budget side. On our side, we are ready to provide whatever type of support is necessary and to take the relevant steps so that production is not affected.” “KKM’s greatest achievement is that the foreign exchange weight has fallen below 50 percent” Reminding that the duration of the Exchange Rate Protected Deposit (KKM) accounts was extended until the end of 2023 with the Presidential decree published in the Official Gazette, Nebati said, “KKM is an important part of financial instruments. The amount in deposits has been continuing horizontally for the last two months. As we explained, its contribution to the country is much greater than its cost. It has a cost of 91.6 billion liras to the Treasury, but with the decrease in volatility in foreign exchange rates in the last two months, there is no burden on the treasury in this regard. Its most important contribution is that the foreign exchange weight, which had reached 70 percent, has fallen below 50 percent. This is truly an indicator of success.” he said. Message on combating informal economy Minister Nebati said that while an average of 200–250 thousand inspections and audits are conducted annually, this year they have exceeded one million. Nebati said, “We will have exceeded 1.1 million by the end of the year.” Speaking about combating informal economy, Minister Nebati said, “We are taking steps to renew the technological infrastructure of our Revenue Administration, which is approximately 1.5 billion liras. Let me call out to all segments of society that sustain their lives through informal economy. You have little time left. We are taking the relevant steps.”