Tax and fee increases in the new year will be set in line with the inflation target, below the revaluation rate, Treasury and Finance Minister Mehmet Şimşek said Thursday.
"In 2026, we will set tax and fee increases in a manner consistent with the inflation target, below the revaluation rate. We continue to support the disinflation process with fiscal policy," the minister wrote in a post on X.
With the general communique on the Tax Procedure Law prepared by the Revenue Administration of the Ministry of Treasury and Finance, the revaluation rate for this year was set at 25.49%, according to the decision published in the country's Official Gazette on Thursday.
The revaluation rate is the average price increase in the Turkish Statistical Institute's (TurkStat's) Domestic Producer Price Index (PPI) in October (including October) of the year to be revalued, compared to the same period of the previous year.
Last year, this rate was announced as 43.93%.
Şimşek, in remarks to Anadolu Agency (AA), also stated that they are working to hike taxes and fees in the new year at a rate lower than the revaluation rate set at 25.49%, taking inflation targets into account.
Annual inflation in Türkiye eased to nearly 33% in the year to October, and the Turkish authorities, as well as the Turkish central bank, set a 16% target for the end of next year.
The minister, speaking to AA, noted that the revaluation rate is not only used for tax increases, but also for updating exemption amounts in tax laws, primarily the income tax bracket.
Şimşek pointed out that they have previously considered adjusting tax and fee updates at a lower rate than the revaluation rate, taking into account inflation targets in line with budget possibilities.
Earlier this month, while presenting his ministry's budget for the upcoming year in the Parliament, the minister hinted at such consideration.
"We are continuing our efforts to increase taxes and fees at a lower rate, considering inflation targets rather than the revaluation rate," he told AA, according to remarks published on Thursday.
Reminding that the tax brackets, especially the income tax bracket, and exemption amounts for taxpayers will also be updated at the revaluation rate, Şimşek further said: "The income tax bracket will be updated at a rate of 25.49%. We will not make any arrangements against our citizens. The exemption amounts related to road and meal allowances that employees benefit from, the income tax deduction amounts enjoyed by our disabled citizens, as well as exemption amounts in rental income, capital gains, and occasional earnings, and many other exemption amounts will be increased at the revaluation rate."
On the other hand, according to the tax laws, the limit for tradespeople's exemption, the thresholds for rent and earnings exemption for taxpayers subject to a simplified procedure, the thresholds for keeping accounts, and the exemption amounts in inheritance and transfer tax are also increasing at the revaluation rate.
With the revaluation rate, changes in many items such as taxes, penalties, meal allowances for employees, transportation expenses, IMEI registrations, and fees for renewing driving licenses and passports are expected. The new rates are set to come into force as of Jan. 1.
