ANKARA
Turkey's Finance Minister Mehmet Simsek announced Friday a reform package which aims to reduce the shadow economy 19 percent by 2018.
In a press conference held in Ankara, Simsek said: “We have already reduced the ratio of the shadow economy to the gross domestic product 6 percentage points since 2002. Now it stands at 26.5 percent.”
“By 2018, with the help of this new program we aim to reduce ratio of shadow economy to gross domestic product to 21.5 percent.”
Simsek said that 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” Simsek 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 crossing Turkish borders will be examined with x-rays to prevent smuggling, and new rules will be introduced to regulate e-commerce.
Simsek said that they aim to accomplish half of these goals by the end of year, as an indication of their commitment to fight the shadow economy.
