Ömer Sabancı, chairman of the Turkish Industrialists and Businessmen Association (TUSIAD), said Tuesday that Türkiye's tax system falls short of what is needed to compete in an increasingly globalized world, and that the informal economy poses the single biggest threat to the country's continued economic expansion.
Speaking at a TUSIAD event unveiling a report on informal economic activity and sustainable growth, Sabancı said unregistered business practices damage entrepreneurial culture, distort fair competition, and lead to inefficient use of resources. He added that any short-term gains companies derive from informal activity ultimately become long-term liabilities.
Citing data from the Turkish Statistical Institute, Sabancı noted that half of Türkiye's employed workforce lacks formal registration or social insurance coverage, costing the country an estimated 17 billion YTL each year.
He argued that competitive disadvantages and bureaucratic burdens in the investment climate push businesses toward informal practices, which then stifle the mechanisms that should drive growth and productivity. Breaking this cycle, he said, requires strong political will, a comprehensive national strategy, and broad social consensus.
Historical summary. TurkishPress restated this wire report, first published in January 2007, in its own words.