Budget discount for zombie walks

A budget brake appeared in the face of ruthless increases in taxes, fees and fines, which would be caused by the Revaluation Rate (YDO) of 122.93 percent announced by the Turkish Statistical Institute (TUIK). In the 2023 budget bill submitted to the Grand National Assembly of Turkey, instead of rates of up to 123 percent for taxes, fees and fines, half-discounted rates were included. According to the budget proposal, taxes, which are expected to rise by 123 percent automatically from the beginning of next year, will be collected by 64.3 percent, fees by 42.7 percent and penalties, especially transit, by 72.8 percent. The budget data indicated that the Presidency will use its authority to halve the rate of increase in taxes and fees, and that the penalties will be reduced through a new legal regulation.

THE DISCOUNT IS PRE-PLANNED

While it is not yet clear what the government will do before the election regarding the reduction, revenue estimates regarding taxes, fees and fines in the 2023 budget revealed that the reduction was planned well in advance. According to the data, the economic directorate forecasts a revenue increase of around 64.3 percent in the motor vehicle tax when economic growth is excluded. The government, which anticipates an additional income of 42.7% in terms of fees, anticipates an increase of 72.3% in the collection it will obtain from fines. These data show that the President’s authority to reduce taxes and fees will be used in rates of up to 50 percent, and a new legal regulation will be made for sanctions and a new reduction authority will be given to the President.

Here are the reduced taxes and penalties

According to calculations made by SÖZCÜ based on budget data, if YDO increases passport fees next year, for example, the cost of issuing a 1-year passport will increase from 452 lira to 1.8 lira. However, the revenue target in the budget indicates that this amount will be reduced to around 645 lira. Also, those who obtain a class B driver’s license will be reduced to 1,594 liras instead of 2,490 liras, and the penalty that will be imposed on those who park their vehicle in the wrong place will be reduced to 677 liras instead of 874 liras. However, considering the election, it would not be a surprise if these price increases are reduced.