Finance Minister Naci Agbal announced that there will be an increase in some taxes within the new Medium Term Program. Minister Ağbal stated that the regulation that will increase the rate of Corporate Tax from 20% to 22% in the finance sector will be referred to the Assembly. "We foresee a 1% tax break from the non-distributed profit shares of the institutions. If the companies have more than 2 years to hold real estate, they will have a 75% profit exemption and we will reduce it to 50%."
In 2017, budget deficit will be 60 billion TL, Minister Ağbal said that passenger car MTV will increase 40 percent in 2018.
'TAXES HIGH' HE WAS TOLD!
Finance Minister Naci Agbal said that in the past few months automobile tax is very high, "I do not say that I will do anything in 2018, but I do not say that I will not do anything. I will not make any increase in indirect taxes in 2017. But I say this: It is important if I come to this point. Now the tax rates on car tax are too high..."
LIST OF HIKES THAT MINISTER ANNOUNCED
* There is a change in the definition of Revenue Tax applied for all income. This change will be effective from 1 January 2018 for wage income and 2017 earnings for other earnings. The 27 percent rate applied to income in the third tier of the Income Tax tariff is up to 30 percent.
* Motor Vehicle Tax on Passenger Cars (MTV) is increasing by 40 percent with the increase.
* Some regulations are being made in Corporate Tax. In the financial sector, a legal regulation that will increase the rate of Corporate Tax from 20 percent to 22 percent will be referred to the Parliament. In addition, a 1 per cent tax reduction will be applied from the non-distributed dividends of the institutions.
* The biggest patch for the budget deficit is again to be made with proceeds from the sale of public goods. The next year's privatization revenue target is estimated at 10 billion liras. In 2019 and 2020, privatization revenues of 10 billion TL are targeted.
Speaking on the government's medium-term program, Finance Minister Naci Ağbal gave information about the tax changes to be made. Agbal, the tax increases in the new year will be introduced in the explanations. Tax hikes in many items from Motor Vehicles Tax to income tax are being made, while the raise rates are at the level of the belly of the citizen.
CHANGES IN INCOME TAX
The corporate tax rate will rise to 22 percent from 20 percent for the financial sector. The overall rate will remain at 20 percent. The income tax applied for all income will also change. This change will be effective from 1 January 2018 for wage income and 2017 earnings for other earnings. The 27 percent rate applied to income in the third tier of the income tax rate will be increased to 30 percent. 25 per cent of proceeds from rent income could be deducted from earnings, and this lump sum would be reduced to 15 per cent.
74 THOUSAND PERSONNEL TO PUBLIC
Special consumption tax will be issued from cigarette paper. It will be extended to cover 25 percent SCT energy drinks from cola soda. The public will receive 74 thousand personnel in 2018.
SYSTEM CHANGED
Naci Agbal said that passenger car MTV will increase by 40 percent in 2018 and that the tax-free value of the vehicle will be taken into consideration. In the current motor vehicle tax system, only engine volume and vehicle age are determinant. The price of entry into the country with the new system will also be effective in taxation. This will result in a significant increase in the MTV of luxury vehicles. Here, there will be a tax increase only for passenger cars. The normal revaluation rate for other instruments will increase.