Ministry of Finance Takes Action Against Companies Raising Prices: Minister Şimşek Vows to Prevent Inflation
The Tax Inspection Board (VDK) of the Ministry of Treasury and Finance has launched an investigation into sectors that are raising prices without any increase in costs and exhibiting cartel-like behavior. The focus of the investigation is on companies operating in these sectors, particularly those engaging in informality audits on monetary transactions.
During the period of price increases, businesses that are raising prices above sector averages but not reflecting this in their taxable earnings, as well as those resisting lowering prices during declines and showing tendencies towards forming cartels, are being closely monitored. The Presidency’s Risk Analysis Center has analyzed the financial statements of income and corporate taxpayers over a 5-year period to determine sectoral profitability trends.
Taxpayers who are found to be increasing their profit margins above sector averages without reflecting this in their financial reports are being identified. Additionally, businesses with financial figures that do not align with sector trends are considered risky. Those with lower sales profitability than industry averages are also under scrutiny for potential informality.
Furthermore, the investigation includes analysis of monetary aggregates provided by banks and payment institutions, along with examining companies’ value added tax bases, purchase-sales, and e-invoice data. International prices of products are also being considered, especially if they significantly deviate from domestic prices without clear reasoning.
The investigation will also look into whether companies selling products at significantly higher prices have a dominant role in pricing within their sector or have established close business relations that could lead to cartel-like behavior. The results of the investigation will be shared with relevant public institutions such as the Ministry of Commerce and the Competition Authority.
Minister of Treasury and Finance Mehmet Şimşek emphasized the importance of proper tax payments, stating that failure to pay direct taxes leads to competitive inequality within sectors and shifts the burden of uncollected taxes onto others. Taxpayers found to be artificially inflating prices or using illegal means to avoid tax payments will face audits and potential penalties to ensure fair competition in the market.
In conclusion, the Ministry of Treasury and Finance is committed to cracking down on businesses that engage in unfair practices such as keeping prices artificially high and avoiding tax payments. Measures will be taken to address any abuses of dominant market power and ensure a level playing field for all businesses.
