What matters on Friday, January 14

Turkey has the potential to move forward in digital transformation with its dynamic population structure, increase in information technologies (IT) usage, and mobile application development, according to Simone Kaslowski, President of the Turkish Industry and Business Association (TUSIAD). Kaslowski stated during his opening speech at the 2nd Digital Turkey Conference held by TUSIAD that there is a need for a broad vision to realize this potential, which will include factors such as the development of the quality of education, protection of the skilled labor force, strengthening the broadband infrastructure, and supporting SMEs for the usage of technology. Kaslowski also said Turkey should focus on a development understanding based on human development and maturation, science and technology, as well as efficient and comprehensive institutions and rules. “This understanding will make us reach the developed, reputable, equitable, and environmentally-friendly Turkey goal. Digital transformation is critical for us to achieve this goal,” Kaslowski noted.

Koc Holding Chairman Omer M. Koc, who was also among the speakers at the conference, said those who missed out on critical transformations in the past realized that they can move forward and make a difference in this process at a lower cost. “We see the most tangible reflection of the digital transformation of developing countries, including Turkey, with Industry 4.0 dynamics. Attracting high value-added foreign investments with a low labor cost advantage is impossible in this period when the West is reclaiming industrial production by providing productivity increase with digital technologies,” Koc noted. Mentioning accelerating brain drain from Turkey in recent years, Koc said: “Our bright youth who are educated by Turkey’s constricted opportunities increasingly strive to seek their future abroad instead of transferring their gains to our country. This upsets and worries me. At this point, it is necessary to understand them and reconsider why they choose this path, remembering Mustafa Kemal Ataturk’s quote, ‘All my hope is in the youth.’ I think that the solution is hidden in the contemporary civilization path drawn by Ataturk.”

The legislative proposal to impose exemption from the corporate income tax for accounts of legal persons that benefit from the FX-protected TRY deposit accounts has been submitted to Parliament. The legislative proposal concerns legal persons deposit accounts dated from December 31, 2021, and also includes the postponement of inflation accounting until the end of 2023.

The Special Consumption Tax (SCT), which has been on the automotive sector’s agenda for a long time due to the the slowdown in sales due to the chip shortage and high FX rates, was determined according to the Official Gazette published yesterday. The tax base was determined as 45% for vehicles not to exceed TRY 120,000, 50% for vehicles between TRY 120,000-150,000, 60% for vehicles between TRY 150,000-175,000, 70% for vehicles between 175,000-200,000 and 80% for the remainder. The tax base was also raised for some hybrid vehicles. A price change of 3% to 16% is expected in some models following the increase.


Year-end inflation is expected to see 29.75% according to the Survey of Market Participants prepared by the Central Bank.

The private sector’s total outstanding loans received from abroad dropped by USD 5.2bn to USD 167.8bn in November 2021 as compared to the end of 2020, according to the Central Bank.

House sales dropped by 0.5% to 1.49 million units in 2021, compared to the previous year, according to the Turkish Statistical Institute (TurkStat).

The number of paid employees in the manufacturing, construction, and trade-services sectors surged by 88.8% from 12.7 million to 13.8 million in November, compared to the same month of the previous year, according to TurkStat.

The Producer Price Index for Agricultural Products (Agriculture-PPI) increased by 36.39% in December, compared to the same month of the previous year, according to TurkStat. Agriculture-PPI rose by 12.51% in December on a monthly basis.

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