HIGHEST TAXES LEVIED ON PETROLEUM PRODUCTS IN THE EU: TURKEY, BUT WHY?

摘要

Turkey has the highest prices for petroleum products, including unleaded, diesel and LPG, when compared to the EU Member States. This is because of the excessive SCT and VAT levied on petroleum products in Turkey, since prices exclusive of all tax and excise duties do not indicate a major difference in the cost of these products, which overrules a legitimate cost difference defence. Neither Turkey's geographical position nor its GDP and per capita income provide a convincing answer as to why Turkey has the highest prices for petroleum products in the EU. It is down to the distorted taxation system of Turkey that consumers are desperate to pay the highest prices for petroleum products in the EU. Turkey should review its taxation system and put an end to offsetting tax evasion from direct taxes with indirect taxes. The composition of tax revenues should be rebalanced towards a higher share of direct, rather than indirect, taxes. A decrease in the excessive amount of SCT levied on petroleum products is an effective and on-the-spot solution to this problematic issue, leading not only to an increase in consumer welfare but also a greater approximation of Turkish law to the European acquis communautaire as part of the accession process.