Turkish finance ministry steps up fight against shadow economy

ANKARA - Anadolu Agency

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Turkish Finance Minister Mehmet Şimşek has announced a reform package which aims to reduce the shadow economy by 19 percent over the next three years.

“We have already reduced the ratio of the shadow economy to the gross domestic product by 6 percentage points since 2002. Now it stands at 26.5 percent,” Şimşek said during a press conference held in Ankara Jan. 30.

“By 2018, with the help of this new program, we aim to reduce the ratio of the shadow economy to gross domestic product to 21.5 percent.”

 Şimşek said unofficial employment was down 32 percent, and the government aims to cut it to below 30 percent by the end of program.

“In 2002, unofficial employment was 52 percent. Now it stands at only 35 to 36 percent. This is also very high, but we should see the huge success here” Şimşek said.

From now on, companies that employ unregistered workers will be banished from public tenders, he noted.

Also, as part of the new reforms, customs houses will be renovated, every cargo vehicle crossing Turkish borders will be examined with x-rays to prevent smuggling and new rules will be introduced to regulate e-commerce.