In the new year, a limit has been set on the increase of excise tax (ÖTV) on fuel.

With the Presidential Decision, the increase rate of the Special Consumption Tax (ÖTV) on fuel products in the new year has been limited to 6 percent. The Presidential Decision, which was published in the Official Gazette and came into effect, determined the ÖTV increase rate to be applied to fuel products in the new year.

ÖTV INCREASE ON FUEL HAS BEEN LIMITED

Every year in January and July, the ÖTV amounts for fuel and similar petroleum products are updated based on the change rate in the domestic producer price index (Yİ-ÜFE) announced by TURKSTAT for the last 6 months. With this decision, the ÖTV increase on fuel products has been limited. Accordingly, the ÖTV applied to fuel products will increase by 6 percent.

EXPECTED TO AFFECT PRICES BY AROUND 1 PERCENT

According to information obtained from the Ministry of Treasury and Finance, the decision taken provided support to monetary policy by making an increase even lower than the 5-month realization. The ÖTV increase is expected to affect prices by around 1 percent.

"WE ARE PROVIDING STRONG SUPPORT TO MONETARY POLICY"

Minister of Treasury and Finance Mehmet Şimşek, in his evaluation regarding the issue, emphasized that the government is coordinating monetary and fiscal policies, stating, "By limiting the tax increase on fuel products, we are providing strong support to monetary policy. This support will positively contribute to the disinflation process. With the President's Decision, we have limited the increase in ÖTV amounts concerning all parties involved, from the fuel used by farmers and transporters to the petroleum products used by industrialists and the natural gas used by households."

12 BILLION LIRA TAX REVENUE WAIVED

Indicating that the Yİ-ÜFE rate was 7.12 percent during the July-November period this year, Şimşek noted: "The ÖTV amounts would have been updated by adding the increase that will occur in December. With the decision we made, we have implemented an even lower rate of increase than the 5-month realization. With this regulation, which is aimed at supporting price stability for the protection of our citizens' purchasing power, sustainable growth, and permanent welfare increase, we are waiving approximately 12 billion lira in tax revenue."