A big increase in taxes, fines and fees is coming
While the producer price index (PPI) rose 66.55 percent in September compared to twelve-month averages, taxes, fees and penalties indexed to the PPI may also increase significantly in the new year.
Tax expert Dr. According to Ozan Bingöl’s calculation, even if producer inflation is “zero” in October, the revaluation rate (TRR) of 2023, which will form the basis for tax and fine increases in 2024, will be 58.16 percent.
Recalling that last year the YDO reached its historical peak of 122.93 percent, Bingöl said: “This year, we will encounter an addition of more than 50 percent in addition to the increase in taxes and penalties with the YDO of 122, 93 percent of last year. “Therefore, there will be a double increase,” he said.
“Such a high revaluation rate will mean that citizens will be crushed by MTV, property tax and other taxes, as well as many other administrative fines and high vehicle inspection fees, especially traffic fees and fines,” Bingöl stated and added: “With a high YDO, taxes and a significant increase in sanctions will also result in dragging or infecting part of the high inflation from 2023 to 2024,” he warned.
THE PRESIDENT HAS AUTHORITY OVER SOME TAXES
Recalling that the President has the authority to set a rate below or above the revaluation rate for some tax items, Bingöl said: “However, there is no such authority, especially in terms of penalties. “Regarding vehicle inspection fees, this authority can be used on a very limited basis every five years,” he said.
Bingöl stated that the Ministry of Treasury and Finance has the authority to announce the revaluation, not determine it, and that after announcing the inflation figures for October, the revaluation rate for the year is announced by notification, usually in November.
Dr. Ozan Bingol
‘LEGAL REGULATION IS A REQUIREMENT’
Recalling that the President generally has broad powers over taxes and tax-related penalties, and that the President has broad powers in areas such as motor vehicle tax, stamp duty, rates, real estate tax and the environmental cleanup tax, in relation to the fixed tax amounts, Bingöl said: “If these powers are used, the high tax rate will be reduced in 2023.” “Due to the revaluation rate, the rate of increase in penalties in the 2024 tax and tax laws may be reduced,” he said.
On the other hand, Bingöl stated that there is no authority given to the President to increase or decrease vehicle inspection fees, traffic fines and many other administrative fines, therefore, there will be huge increases in vehicle inspection fees and fines, and said: “The only way to avoid it is “It is a legal regulation that takes into account the extraordinary economic situation we are experiencing,” he stated.