Government Limits SCT Increase on Fuel Products, Minister Şimşek Announces 12 Billion Lira Tax Cut
New SCT Increase Rate for Fuel Products Announced
A recent Presidential Decree published in the Official Gazette has determined the Special Consumption Tax (SCT) increase rate for fuel products in the upcoming year. Every January and July, the SCT amounts for fuel and similar petroleum products are adjusted based on the change in the domestic producer price index (D-PPI) over the last 6 months, as announced by TURKSTAT. With this new decision, the increase in SCT on fuel products has been limited to 6 percent.
According to information received from the Ministry of Treasury and Finance, the decision to limit the SCT increase was made to support monetary policy by keeping the increase lower than the previous 5-month realization. It is estimated that this SCT increase will have an impact of approximately 1 percent on prices.
Minister of Treasury and Finance, Mehmet Şimşek, emphasized the importance of coordinating monetary and fiscal policies and stated that limiting the tax increase on fuel products will provide strong support to monetary policy and contribute positively to the disinflation process. He also mentioned that this decision will benefit various sectors, from farmers to industrialists, and help stabilize the purchasing power of citizens.
Şimşek further explained that the D-PPI rate was 7.12 percent in the July-November period this year, and by limiting the SCT increase, they are giving up approximately 12 billion lira of taxes. This regulation aims to support price stability, sustainable growth, and overall welfare for the citizens.
Overall, this new SCT increase rate for fuel products is expected to have a moderate impact on prices while providing support to monetary policy and benefiting various sectors of the economy.
