Finance Minister Şimşek Unveils Export Tax Incentive Package

Turkish Finance Minister Mehmet Şimşek unveiled a broad package of fiscal incentives aimed at boosting Turkey's export competitiveness as the government seeks to narrow the widening trade deficit and attract foreign investment. Key measures include extending the tax exemption on service exports to 100% (up from 50%) and reducing the corporate tax rate for manufacturing exporters to 9% from the standard 25%. The package is part of Turkey's medium-term economic program to transition toward a higher-value-added export base, increase foreign currency earnings, and reduce the current account deficit. Turkey's trade deficit widened sharply in early 2026, with exports falling 6.4% and imports rising 8.2% in March.