Turkey’s special consumption tax (SCT) on fuel and natural gas, used as a major instrument to boost the country’s budget, is expected to generate 33.6 billion Turkish Liras by the end of this year.
Total tax revenues generated through the SCT on fuel and natural gas is expected to reach 36.5 billion liras by the end 2012, thus marking an 8 percent increase compared to the forecast for 2011, according to information gathered by the Anatolia news agency.
The Turkish state collected nearly 22.2 billion liras from SCT on oil and gas in 2007, 23.9 billion liras in 2008, as well as 25.6 billion liras and 31.7 billion liras in 2009 and 2010 respectively. Including estimated special tax revenues for this year and 2012, the country will generate 173.5 billion lira in the six-year period between 2007 and 2012.
The Turkish government is expected to collect nearly 5.9 billion liras from the special tax on motor vehicles by the end of this year.
SCT revenues from motor vehicles are also expected to see a 14 percent rise in 2012, compared with this year reaching to 6.76 billion liras in total.
The government uses tax revenues for taming the country’s chronic current account deficit problem, which is likely to peak at 9.4 percent of gross domestic product this year. The government plans to reduce the gap to 8 percent next year and further to 7.5 percent in 2013 and 7 percent by 2014.
Meanwhile, the new SCT also increased tax on alcohol drinks, tobacco products, mobile phones and cars prior to the announcement of the medium-term budget plan on Oct.13. Tax rates on cigarettes were risen to 69 percent from 63. The tax on beer rose 29 percent per liter and the mobile phone tax rate rose to 25 percent from 20.