Fuel SCTT Collections Declined Due to the Sliding Scale System
The sliding scale system implemented in the January-July period and rising oil prices brought a multi-billion lira decrease in the special consumption tax on fuel.
As a result of the war between the US and Iran increasing oil prices and the implementation of the sliding scale system, a total decrease of 94.2 billion liras was recorded in fuel SCTT collections in the first seven months of the year.
Decline in SCTT Collection
While 273 billion liras in SCTT collections were realized in the January-July period of last year, collections decreased by 34.4 percent in the same period this year, dropping to 179 billion liras.
Monthly Tax Revenue Changes
While the year started with a monthly collection of 50 billion liras, this figure dropped to 6.8 billion liras in April, 4.4 billion liras in May, and 7.4 billion liras in July.
Impact of the Sliding Scale System
The sliding scale system, which was also used in 2018 and 2022, stipulates that part of the increase in fuel costs is covered by the SCTT. The reactivation of the system this year affected budget revenues.
Prices and Collection Rates
Although fuel prices have doubled since last year and diesel has risen above 80 liras, tax revenues have decreased significantly due to the sliding scale system.
New Regulations and Reflection on the Pump
Until July 31, approximately 50 percent of the increase was reflected in prices, while the support rate was reduced to 25 percent from August 1 until the end of September. For diesel, an automatic 3-lira SCTT increase was initiated every month until the end of the year.