Turkish government led by the Justice and Development Party (AKP) submitted a budget proposal to the Parliament and expected revenue of 3.4 trillion Turkish liras ($121.4B) from the value-added tax (VAT) and 1.4 trillion liras ($50B) from the special consumption tax (ÖTV).
The government predicted that tax revenues would reach 8.335 billion liras in 2024 and estimated that it would garner 4.82 trillion liras in total at the end of 2023. Thus, tax revenues were expected to increase by 72.7 percent, according to reporting of the daily BirGün.
According to the proposal, 40% of the tax burden will be placed on the citizens through VAT on consumer goods. ÖTV, which aims to tax fuel, alcohol and tobacco products, motor vehicles as well as certain goods subject to luxury consumption, was expected to increase by 71.9% in 2024.
In 2024, it was anticipated that ÖTV on oil and natural gas products would rise by 129.4%, on automobiles by 43.6%, on alcohol by 70.3%, and on tobacco products by 71.8%.
In the 2024 central government budget, projected budget expenditures were 11.09 trillion liras, while budget revenues were estimated to be 8.4 trillion liras, resulting in an anticipated budget deficit of 2.6 trillion liras.
To bridge this deficit, taxes will be abolished up to the projected budget deficit amount. Specifically, the government will forgo collecting a total of 2.2 trillion liras in taxes from the high classes under the category of "tax deductions, exemptions, and exceptions." In the 2023 budget, this amount was 994.4 billion liras.
Turkey’s central government budget recorded a deficit of 129.2 billion Turkish liras (approximately $4.63 billion) in September, following two consecutive months of surplus.
Tax revenues saw a substantial rise of 122.6 percent, amounting to 386.2 billion liras during this period.