Wealth amnesty lures 26 billion liras this year: Minister

Wealth amnesty lures 26 billion liras this year: Minister

Wealth amnesty lures 26 billion liras this year: Minister

Some 25.5 billion Turkish Liras worth of assets have been declared or repatriated in 2022 alone under the wealth amnesty scheme, according to Treasury and Finance Minister Nureddin Nebati.

Since 2008, seven wealth amnesty schemes have been introduced with the last one announced in July this year, Nebati said.

Around 4.7 billion worth of domestically held assets have been declared as well as 12.3 billion worth of assets, which equals $760 million based on this year’s average exchange rate, held abroad have been repatriated since the latest wealth amnesty that took effect in July 2022, the minister said, responding to questions from lawmakers at the parliament’s budget and planning commission.

The total 25.5 billion liras assets declared and repatriated are equivalent to $1.57 billion, he added.

Inflationary pressure

The difference between the wholesale price index and consumer price index has been widening globally as well as in Türkiye since the start of 2021 he noted.

Nebati however said that he did not expect pressure from wholesale prices to disrupt the anticipated decline in consumer prices in Türkiye.

The wholesale price index grew 41.9 percent and the consumer price index increased 10.7 percent in Europe. Wholesale price increase is four times higher than consumer prices but in Türkiye this difference is smaller, not even twofold,” the minister added.

He further explained that the weight of the services sector in the consumer price index is around 30 percent, but the wholesale price index does not include this sector. “Moreover, consumer prices include taxes, but this is not the case for the producer prices.”

“We believe the increases in wholesale prices have already been largely passed onto consumer prices. Thus, we do not expect the current WPI to crease pressure which could derail the expected decline in CPI inflation,” Nebati said.

The minister also noted that he has been holding talks with domestic and international investors since he took office.

Nebati recalled that in one day he held meetings with some 40 executives from asset management firms and other investment companies.

Meanwhile, the minister met with representatives of several local construction firms.

“We assessed the impacts of the latest economic developments on the sector,” Nebati wrote on Twitter on Nov. 12, without providing further details.

Such sector-focused meetings with businesspeople will continue in the period ahead, the minister said.