How much will the Revaluation Rate be? Double-digit hikes for taxes, fees, and fines in 2027!

While the downward trend in inflation continues, the revaluation rate to be applied to public receivables could be reflected as a high increase in taxes, fees, fines, and certain charges at the beginning of 2027. According to calculations by Dünya newspaper columnist Naki Bakır, current data indicates that the rate to be applied in 2027 could fall within the 27-28 percent range.

This rate will be decisive for numerous items, including property tax, environmental cleaning tax, special communication tax, Motor Vehicle Tax (MTV), various fees, vehicle inspection fees, income tax brackets, and traffic fines.

HOW IS THE RATE DETERMINED?

According to Article 298 of the Tax Procedure Law, the revaluation rate is calculated based on the increase in the 12-month average of the Domestic Producer Price Index (D-PPI) at the end of October. The rate to be applied in 2027 will be finalized with the announcement of the October D-PPI data on November 3.

Calculations made as of the end of September indicate that even if prices do not increase at all in October, the rate will be approximately 27.63 percent. If the October D-PPI increase is 1.5 percent, the rate could rise to 27.81 percent; if it is 2 percent, it could reach 27.87 percent; and if it is 2.5 percent, it could reach 27.93 percent.

In recent years, revaluation rates have reached remarkable levels due to the impact of high inflation. The rate was applied at 122.93 percent in 2023, 58.46 percent in 2024, 43.93 percent in 2025, and 25.49 percent in 2026.

Bakır recalled that CPI-based inflation fell below 30 percent in September, reaching its lowest level in the last 57 months, while the year-end inflation target in the Medium-Term Program covering the 2027-2029 period was set at 21 percent. The fact that the revaluation rate remains above this target brings up the debate over real increases in public burdens.

According to expert assessments, taking the targeted inflation into account for wage and salary increases, while increasing taxes, fines, and fees at a rate reflecting the high inflation of the past period, could create a contradictory picture for households.

Under the Tax Procedure Law, the President has the authority to increase or decrease the revaluation rate for certain taxes and fees by up to 50 percent. For the Motor Vehicle Tax, the authority to increase is 50 percent, and the authority to decrease is 80 percent. Therefore, it will be monitored whether the economic administration will apply increases below the revaluation rate, particularly for items such as fixed fees and the Motor Vehicle Tax.

News Source: 12punto