New era in deductions from municipal shares: Rates increased

A new regulation has been introduced regarding the lighting expense deductions made from the shares municipalities receive from general budget tax revenues. With a Presidential Decree published in the Official Gazette, the rates to be applied for municipalities and provincial special administrations have been increased.

According to the decision, 60 percent of lighting expenses in metropolitan municipalities and municipalities located within the adjacent areas of these municipalities will be deducted from the share allocated to municipalities from general budget tax revenues.

HOW WILL THE NEW RATES BE APPLIED?

In municipalities other than metropolitan municipalities and those in their adjacent areas, 30 percent of lighting expenses will be covered by the share from general budget tax revenues.

60 percent of the lighting expenses remaining outside the determined limits will be covered by the share allocated to the relevant provincial special administration. Thus, a significant increase has been made in the deduction rates compared to the previous practice.

In the previous system, a deduction rate of 20 percent was applied for metropolitan municipalities and provincial special administrations, and 10 percent for other municipalities. With the new decision, these rates have been tripled.

While the Presidential Decree entered into force on the date of its publication, January 1, 2026, will be taken as the basis for the implementation of the regulation. The new deduction rates will be valid from this date onwards.

News Source: 12punto