Tax injustice worsens in Turkey
Two-thirds of the Turkish government’s tax revenues have come from indirect taxes on consumption, adding to the burden of low- and middle-income groups.
Unjust distribution of the tax burden — a major component of economic inequalities in Turkey — has further exacerbated during the coronavirus pandemic, but far from looking for remedies, Ankara has recently hiked taxes that affect low- and middle-income groups the worst.
Budget performance data, released in mid-January, show that tax revenues in the central government budget totaled 833 billion Turkish liras ($117 billion) in 2020, with the bulk coming from indirect taxes levied on consumption. Indirect taxes, including the value-added tax (VAT), the special consumption tax and the special communication tax among others, brought in 551 billion liras ($77 billion), accounting for 66% of all taxes, up from 61% the previous year.
