Gazete Pencere web daily Ankara correspondent Ms. Nuray Babacan is known for her connections to AKP insiders. In her article published on 22 August, Thursday, she provides the most detailed and more-or-less credible account of the controversy surrounding economy czar Mehmet Simsek. Did he really resign? Does he intend to resign?
The fact that the economic conditions are not improving as desired and that the Minister of Treasury and Finance, Mehmet Şimşek, cannot take the decisions he wants, frequently brings to the fore the claims that there is a “crisis in economic management”. While the Presidency denied the news that Şimşek was on the point of resigning throughout the day yesterday, claims were made that these allegations stemmed from a tense meeting held in the Palace.
It is stated that at the meeting concerning economic policy held at the Presidential Palace, the current situation was assessed; and the second economic measures package, which was scheduled to be presented to the Speaker after the opening of the Turkish Grand National Assembly on October 1, was discussed.
It was claimed that economic advisors in the Presidency, with whom Şimşek did not like to work, also attended this meeting, to criticize the policies implemented. It is claimed that instead of responding to the criticism, Şimşek left the meeting by saying, “I said what I needed to say, you do what you want to.” It is also among the rumors within the AKP that this tense meeting may have been reflected to the press as Şimşek’s preparation to submit his resignation.
TAX PACKAGE FOR THE RICH
Let’s talk about the new tax package being debated. The new package contains exactly the regulations that have been cited as justification for controversy. According to AKP staff, the set of measures includes new tax regulations within the scope of the policy of “Taking less tax from those who earn less, and more from those who earn more”; i.e. a more progressive tax regime. Additionally, new steps will be taken to prevent tax evasion and avoidance.
According to the information I obtained, groups that earned millions of liras, lived in luxury houses, drove luxury cars and paid almost no taxes are currently under close surveillance. Efforts are being made to include in the proposal regulations that will force them to pay taxes according to their spending, rather than the income they declare. Which professions will be included in this scope will be determined in detail before the package is presented to the parliament.
AKP members who participated in the preparations said, “The purpose of this bill is to end informality. Everyone will pay taxes on what they earn. There will be measures for this in the new law proposal. You see, here is a person who just bought a car worth millions of liras. He has a luxurious life but he doesn’t pay taxes. We examine these groups one by one. “A detailed study is being carried out regarding artists, athletes, jewelers and other professions,” they said.
THE TRUTH OF THE MATTER WILL BE REVEALED SOON
Whether this bill will come to the agenda as described will also give an idea about whether there is a crisis in economic management. Party members who know Şimşek’s emotional outbursts admit that he is deeply disturbed by the fact that the decisions he makes are facing foot-dragging from the old school. The fate of this package will provide valuable insights into the length of Simsek’s tenure.
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