Explanation of the SCT increase of the Ministry of Finance

The Ministry of Treasury and Finance ruled on the rise in fuel prices from the SCT. The statement, which claimed that the walk was done for two reasons, included the following statements:

*First of all, the increase is intended to reduce the effect of cost overruns caused by the earthquake on the budget. The regulation will also indirectly support the control of the current account deficit since these products are imported products.

“PRACTICALLY NO TAX INCREASES HAVE BEEN MADE”

*Second, despite increases in international oil prices and exchange rates on these fixed taxes, there have been almost no tax increases since 2016. Due to the fact that the SCT amounts are fixed, They melted in the face of inflation.

*As a result of this, SCT taken from combustible products; Although its participation in GDP was 4.58% in 2016, it decreased to 2.80% in 2022, and although its participation in tax revenue was 26.23% in 2016, it decreased to 17.84% in 2022.

*Although the tax rate on the sale price with VAT on gasoline, diesel and LPG, which is the most consumed of these products, exceeded 50%, it remained at the level of 38.5 despite the recent increase.

*The fixed amounts of SCT taken from fuel products with the Presidential Decree published today and which have not increased for approximately 7 years; 5 TL for gasoline and diesel, 4 TL for LPG and other products depending on the rate of increase in the SCT quantities of these products.

“IT INCREASED WELL BELOW INFLATION”

*The increases are well below the increase in inflation since 2016. Despite the increase, our country continues to be the 4th cheapest country in Europe for gasoline and diesel. While gasoline costs $2,057 and diesel $1,861 in our border neighbor Greece, after the tax increase, gasoline costs $1,303 and diesel $1,239 in our country.