Sharp increase in taxes, fines, fees in Turkey ahead of new year

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As per a decision published in the Official Gazette yesterday (December 21), the special communication tax, environmental cleaning tax, stamp duty, fees and fines imposed as per the Tax Procedural Law will increase in Turkey by 36.2 percent starting from January 1, 2022. According to the same decision, the real estate tax has also been increased by 18.10 percent.

In 2022, the Motor Vehicle Tax (MTV) will also increase by 25 percent. Last year, the increase in this tax was 9.1 percent. So, while citizens paid 1,051 Turkish Lira (TRY) as a motor vehicle tax for a one-year-old vehicle that cost 56,500 TRY at most last year, they will pay 1,313 TRY in tax for a one-year-old vehicle of 1300cc which costs 70,600 TRY at most this year.

Stamp duty cut from salaries

The Parliamentary Commission on Planning and Budgetary has passed a motion foreseeing that no stamp duty or income tax will be levied on the minimum wage and on the same amount in all other salaries. It has not yet been debated at the General Assembly of the Parliament.

Revaluation rate was 36.2 percent

According to the General Communique on Tax Procedural Law of the Ministry of Treasury and Finance published in the Official Gazette on November 27, the revaluation rate would be 36.2 percent.

Based on this, it was announced that there would be a 36.2-percent increase in the Motor Vehicle Tax, traffic tickets, driving license and passport fees and the fees imposed on phones brought from abroad.

The revaluation rate to be applied in the third quarter of 2021 was set at 27.37 percent. When the revaluation rates announced since 2002 are considered, it is seen that the 36.2-percent increase announced in November 2021 has been the highest increase in Turkey in this period.

What is the revaluation rate? It is used as a basis while determining several tax items such as some tax increases, traffic tickets, passport and other valuable paper fees and real estate taxes. Moreover, it is also cited as a reference to determine the rate of increase in fees, rents and payments in some contracts in the public and private sectors.

(TP/SD)