 Turkish service reported on Wednesday.){kind=link}
Turkish citizens are bracing for a new wave of price increases across a wide range of government fees and services starting January 1, 2025, following the announcement of a 43.9 percent re-evaluation rate by the Ministry of Treasury and Finance, Deutsche Welle (DW) Turkish service reported on Wednesday.
The re-evaluation rate is the percentage increase applied to various taxes, fees and fines to adjust for inflation and rising costs in Turkey’s economy, and it is announced annually.
The decision, published in the Official Gazette on Wednesday, will lead to significant hikes in costs for passports, driver’s licenses, vehicle taxes, traffic fines and more in the new year.
The re-evaluation rate is expected to impact both households and businesses. The Motor Vehicle Tax (MTV) will see a substantial rise, with vehicle inspection fees climbing from TL 1,821 to TL 2,621.
One US dollar was equal to 34.65 Turkish lira (TL) as of November 27.
Traffic violations will carry heftier fines. Using a mobile phone while driving, running a red light or failing to get a vehicle inspected will incur penalties rising from TL 1,506 to TL 2,168. More serious offenses, such as driving without a license or driving under the influence of alcohol for the first time, will see fines increase from TL 6,439 to TL 9,267.
The cost of travel documents will also rise dramatically. The fee for passports valid for more than three years will increase from TL 7,833 to TL 11,274, while importing phones from abroad will come with a charge of TL 45,614, up from TL 31,692.
Tax expert Ozan Bingöl said on X that Turkish President Recep Tayyip Erdoğan has the authority to intervene in the re-evaluation rates.
“We will see which taxes and fees the president will choose to exercise his authority over,” Bingöl said, noting that the deadline is December 31.
Kasım ayının başında yazmıştık. Yeniden Değerleme Oranı Resmi Gazetede de yayımlandı. 31 Aralık tarihine kadar Cumhurbaşkanının hangi vergi ve harçlarda yetki kullanıp kullanmayacağını göreceğiz. https://t.co/83P0NAs5r3
— Ozan Bingöl (@ozanbingoll) November 27, 2024
Turkey has been grappling with a deepening cost-of-living crisis marked by high inflation and a depreciating currency.
The country’s poor have been hit the hardest by an economic deterioration that saw the official annual inflation rate reach a decades-long high of 85 percent in October 2022, according to official figures. The rate then fell, but it remains a significant concern. It stood at 48.6 percent in October, slowing less than anticipated, according to data from the Turkish Statistical Institute (TurkStat).
However, according to the Turkey Inflation Research Group (ENAG), an independent group of economists, annual inflation was much higher than was announced by TurkStat, standing at 89.7 percent in October.
According to an October survey conducted by ASAL Research, more than 60 percent of the Turkish public thinks the economy presents the most pressing problem in their lives.