Cigarette users paid 331 percent more tax than companies

In Turkey, the direct tax paid by wage and salary earners in January of this year dwarfed the direct tax paid by companies. The government generated 792.6 billion TL in tax revenue in January 2025. While the income tax collected by the state from wages and salaries increased by 92 percent on a monthly basis in January, the corporate tax paid by companies decreased by 21 percent in the same period. The share of corporate tax within the budget was planned to be 15.1 percent in 2024, but the actual rate was 10.3 percent.

In January 2024, workers and laborers paid 102.8 billion TL in direct income tax. This amount rose to 197.3 billion TL. The amount of direct tax collected from corporations in January 2024 was 10.1 billion TL. This amount fell to 7.9 billion TL in January 2025. Thus, wage and salary earners paid 2,362 percent more in direct taxes in January than business owners. The share of tax paid by companies within total tax revenues was only 1 percent. The direct tax rate paid by workers and laborers was 24.91 percent.

When ÖTV (Special Consumption Tax), VAT, and MTV (Motor Vehicle Tax) are included, the scale of tax injustice increases. In January 2025, 34.6 billion TL in corporate tax was collected. VAT and ÖTV revenues, which are types of indirect taxes included in the sale of products and services, also increased. While VAT collected on imports was 113.4 billion TL, the amount of VAT collected domestically rose to 165.5 billion TL. The total share of VAT in budget revenues was 35.18 percent.

ÖTV COLLECTED FROM CIGARETTES EXCEEDS TAX PAID BY COMPANIES

The ÖTV collected from petroleum and natural gas was 39 billion TL. The amount of ÖTV collected from tobacco was 34.5 billion TL, accounting for 4.37 percent of tax revenues. Accordingly, the amount of ÖTV collected from tobacco products (34.5 billion TL) dwarfed the corporate tax paid by companies (8 billion TL). Cigarette users paid 331 percent more tax in January than companies.

CIVIL SERVANT SALARIES BELOW INFLATION

The total wages paid by the state to civil servants increased below the rate of inflation. During a period when inflation was 42 percent, civil servant salaries showed an increase of 38 percent.

Interest payments amounted to 163 billion TL. Last year, total interest payments were 1.2 trillion TL. This year, interest payments are expected to reach 2 trillion TL. 

News Source: 12punto