Tonight there is an increase in VAT on gasoline, diesel and autogas

The rise in the Value Added Tax (VAT) is reaching fuel prices, which are rising rapidly due to the increase in the dollar exchange rate after the elections.

With the President’s Decision, tonight the decision to increase VAT on fuel products from 18 to 20 percent enters into force.

According to information provided by industry sources, the price per liter will increase by 40 cents for gasoline, 38 cents for diesel and 15 cents for automotive gas (LPG), starting at midnight tonight.

SCT RISE WILL ALSO ARRIVE

The proposal, which contemplates an increase in the Special Consumption Tax (SCT) on fuel products at the producer’s inflation rate every 6 months, was presented to Parliament earlier this week. After the proposal becomes law, there will be an increase in the SCT on fuel products.

In the first six months of 2023, producer inflation was 14.82 percent.

Currently 2.5 TL per liter of gasoline and 2.06 TL per liter of diesel are charged. 18 percent VAT is also applied to this SCT.

After the proposal becomes law in the next few days, the fixed excise duty on a liter of gasoline will increase to TL 2.9. When VAT is added, there will be an increase of approximately 43 cents per liter of gasoline. In diesel, an increase of 37 cents will be on the agenda.

WHAT WILL THE NEW PRICES BE?

With tonight’s rise, the price of a liter of gasoline will rise to approximately TL 26.65 in Istanbul, TL 27.13 in Ankara and TL 27.16 in Izmir.

With the increase, the price per liter of diesel will increase to approximately TL 25.20 in Istanbul, TL 25.67 in Ankara and TL 25.79 in Izmir.

On May 14, election day, the price per liter in Istanbul was TL 19.81 for gasoline and TL 18.58 for diesel. With tonight’s increase, the rate of increase in the last 2 months after the elections will be 34.5 percent in gasoline and 35.6 percent in diesel.