Gov’t targets 72 percent increase in tax income

ANKARA

Tax revenues are expected to increase by 72 percent, according to the 2024 budget proposal submitted to the parliament.

The 2024 budget, similar to other documents such as the medium-term plan (OVP) and the 12th Development Plan after Mehmet Şimşek was appointed as the treasury and finance minister, emphasizes fiscal discipline and exports.

In the 2024 budget, Türkiye is projected to grow by 4 percent, the year-end consumer price index (TÜFE) will be 33 percent, exports will reach $267 billion and imports will reach $372.8 billion.

Budget expenditures, excluding state aid and shares allocated from revenues, were set at 11.9 trillion Turkish Liras, while the budget deficit was estimated at 2.6 trillion liras.

Tax revenues next year are expected to be 7.4 trillion liras, with 1.2 trillion liras from personal income tax, 1.2 trillion liras from corporate income tax, 826 billion liras from domestic VAT, 1.7 trillion from import VAT, 1.4 trillion liras from Special Consumption Tax (ÖTV), 68.8 billion liras in motorized vehicle tax (MTV), 214 billion liras in banking and insurance transactions tax, 250 billion liras in fees and 143 billion liras in stamp tax.

Accordingly, next year's budget will prioritize strengthening financial stability, growth through increased exports, achieving a lasting improvement in the current account deficit, reducing inflation to single digits in the medium term, and maintaining fiscal discipline while recovering from the disaster. In this context, the tax base will be broadened, inefficient areas of public sector spending will be eliminated, and new areas of spending will be limited. In the social security system, measures will be implemented to encourage citizens to remain in the labor force and prioritize actuarial balance.

While the ÖTV revenue from alcohol is expected to be 63.2 billion liras at the end of this year, the revenue from this item is expected to increase by 70.3 percent to 107.6 billion liras next year.

The ÖTV on cigarettes is expected to reach 146.4 billion liras this year and 251.6 billion liras next year, with an increase of 71.8 percent.