Fuel Tax Regulation and Waived Revenues
As part of the fight against inflation, the amount waived by the Ministry of Treasury and Finance through fuel tax regulations has reached billions of liras.
Within the scope of tax regulations implemented to combat inflation and counteract the increase in oil prices driven by the war between the US and Iran, the amount of Special Consumption Tax (SCT) and Value Added Tax (VAT) waived by the Ministry of Treasury and Finance as of the end of August exceeded 280 billion liras.
Oil Prices and Tax Measures
The war between the US and Iran caused a sharp rise in oil prices. This increase in the barrel price of Brent crude pushed fuel prices upward in Turkey as well as across the world.
Steps Taken by Economic Management
The economic management implemented tax regulations to protect citizens and prevent the fight against inflation from being harmed. While the sliding scale system was gradually phased out, the SCT on diesel was also zeroed in August.
SCT and VAT Revenue Loss
Following these steps, the amount of SCT and VAT that the Ministry of Treasury and Finance refrained from collecting as of the end of August surpassed 280 billion liras. Since VAT is also calculated over the SCT collected from fuel, the figure encompasses both items.
Year-End and 2026 Projections
Under the Presidential Decree, SCT amounts on fuel are projected to be increased at certain monthly rates until the end of the year. If the current practice continues, the revenue loss is estimated to exceed 370 billion liras.
Budget Targets and Collection Data
While the SCT collection from fuel stood at 273.4 billion liras in the January-July period of 2025, it remained at 179.4 billion liras in the same period of 2026. Collections showed a decline of approximately 34 percent.