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Automatic Adjustment of Fixed SCT Amounts Tied to Domestic Producer Price Index
Turkey’s Ministry of Treasury and Finance has announced an automatic adjustment to Special Consumption Tax (SCT) amounts, following a scheduled inflation-linked recalculation based on Article 12, Paragraph 5 of Law No. 4760 on Special Consumption Tax (ÖTV).
In accordance with the law, specific fixed tax amounts listed under Schedule I of the SCT law, or the most recent amounts adjusted by Presidential Decree, are automatically revised in January and July each year. This adjustment is directly tied to the change in the Domestic Producer Price Index (D-PPI) over the prior six-month period, as announced by the Turkish Statistical Institute (TÜİK).
According to TÜİK, the D-PPI has risen by 15.71% over the last six months. Consequently, fixed SCT amounts for goods listed under Schedule I are now deemed automatically adjusted by the same rate, effective immediately as of the index announcement date.
Scope of Adjustment
Schedule I primarily covers:
- Fuel products (gasoline, diesel, LPG)
- Certain oil-based products
These adjustments result in higher fixed tax burdens on these goods, which are frequently subject to SCT in Turkey’s indirect taxation system.
Economic and Policy Implications
The automatic SCT adjustment mechanism reflects Turkey’s inflation-indexed tax policies aimed at preserving real tax revenue amidst inflationary pressures. However, this may further escalate consumer prices, especially in the energy and fuel sectors, potentially contributing to cost-of-living pressures.
Next Steps for Businesses
Taxpayers and importers dealing with goods listed under Schedule I should immediately:
- Review the newly adjusted SCT amounts.
- Update pricing, invoicing, and reporting systems accordingly.
- Monitor any forthcoming administrative guidance or Presidential Decrees related to SCT applications.
The updated SCT amounts are available via the official notice and the attached table provided by the Ministry of Finance.
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