Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
The Turkish government has temporarily eliminated the special consumption tax on diesel fuel for the remainder of August in an effort to curb inflation. Pump prices fell by more than 13 percent a day after the government’s decision on Aug. 12.
Under the agreement signed between Turkey and the U.K., the £5.4 billion payment to the Eurofighter consortium for 20 Typhoon fighter jets was not included in either the Defense Ministry’s budget or the Defense Industry Presidency's (SSB) budget. The Defense Industry Support Fund (SSDF) can be used as a source of funding for this project, but the cost of the Typhoons is approximately double the annual amount transferred to the fund from taxes collected by the state.
President Recep Tayyip Erdoğan removed additional tariffs on certain U.S.-made products, including automobiles, ahead of his meeting with U.S. President Donald Trump. The Presidential Decree was published in the Official Gazette, saying that no additional taxes will be imposed on imports of U.S.-origin products such as passenger cars, cosmetics and skin care products, leaf tobacco, and alcoholic beverages.
The tax burden for many small businesses will rise after changes announced in the Official Gazette.