Turkey pays ‘indirect’ taxes, figures reveal

ANKARA - Anatolia News Agency

A tax office is seen in this photo. Turkey ranked 28th among 34 OECD countries in taxes on incomes and earnings, figures from the Finance Ministry shows.

Turkey ranked 28th among 34 OECD countries in taxes on incomes and earnings, while the share of indirect taxes in total is 47.7 percent, figures from the Finance Ministry have revealed.

The share of taxes on incomes and earnings in total, which is considered an indicator of a fair tax system, is at a low level in Turkey compared to developed countries.

Meanwhile, the share of indirect taxes on goods and services in total is 47.7 percent, which surpasses the 34.7 percent average of the OECD. The average share of taxes on gross domestic product (GDP) among OECD countries is 33.9 percent.

Denmark ranked first
Denmark ranked first with 48.2 percent. Turkey has a better rate with 26 percent than Mexico, Chile, the United States, South Korea and Australia. The informal economy, contraband trade, tax evasion and the other major problems contribute to taxation problems. The Finance Ministry is preparing to change rules and legislation to take precautions.