Citizens pay for half of their gasoline for the state: Fuel tax fuels inflation

High fuel taxes continue to trigger inflation. While the tax rate on gasoline prices makes it difficult for consumers to pay, the gap between the amount paid at the pump and the tax-free price is widening.

TAX BURDEN INCREASES INFLATION 

Recent fuel price hikes affect not only drivers but also the prices of food and other products. The high tax rate on gasoline and diesel prices further fuels inflation. Prof. Dr. Murat Batı, Head of the Department of Fiscal Law at Ondokuz Mayıs University Faculty of Law, calculated the tax collected from fuel. Prof. Dr. Batı explained the amount of tax collected per liter of gasoline in detail.

HALF OF THE GASOLINE PRICE GOES TO THE STATE 

Both Special Consumption Tax (ÖTV) and Value Added Tax (KDV) are collected on gasoline and diesel. According to the information provided by Prof. Dr. Batı, while the ÖTV on gasoline and diesel is collected as a fixed amount per liter, the KDV is collected at a proportional rate of 20 percent. According to these calculations, out of the current 26 lira gasoline price, a total of 19.65 lira in taxes is collected, consisting of 11.9819 lira in ÖTV and 7.67 lira in KDV. This means that 42.72 percent of the gasoline price goes to the Treasury as tax.

975.59 lira tax is paid for a 50-liter tank

To give an example, after the latest price hike in Istanbul, one liter of gasoline rose to 45.18 lira. For a 50-liter tank, drivers pay 2,259 lira. While 975.59 lira of this amount is tax, the tax-free price is calculated as 1,283.40 lira. In other words, the tax rate for 50 liters of gasoline constitutes 43.18 percent of the sales price.

News Source: 12punto