Special Consumption Tax Research Articles

Why are consumers switching to electric vehicles? Analyzing consumers preferences for electric vehicles

Turkey is highly dependent on foreign oil supply and the number of automobiles and fuel consumption is increasing day by day. In terms of greenhouse gas emissions, road transportation is second only to electric power generation. This study studies people's readiness to transition to electric vehicles in order to enhance their environmental and social quality of life, as well as the most effective strategy to increase the market share of electric vehicles (EVs) by 2030. We polled 466 automobile owners from 76 places throughout the country to determine their preferences. The intention to transition to EVs is the dependent variable in our study, with three ordinal responses ranging from “Certainly will switch” to “Definitely will not switch”. The survey used an ordinal response logit (ORL) model with four policy scenarios. These scenarios are: abolishing the special consumption tax (SCT), providing government-backed loans, introducing an age limit for conventional vehicles, and increasing the number of EV stations. In the absence of any policy action by the government or automakers, we estimate that the market share of EVs in Turkey would be 0.1% and the potential customer base would be 1% by 2030. The abolition of special consumption tax (SCT) on EVs would boost the intention to absolutely switch and the likelihood of switching to EVs by 19.5% and 53.2%, respectively. This result shows that the tax on vehicles is the main factor influencing consumers to switch to EVs. The results of this paper suggests that other scenarios implemented by the government will also increase the market share of electric cars in Turkey.

AKIL HASTASI KISITLININ ARACININ KAZAYA KARIŞMASI HALİNDE SORUMLULUK VE SİGORTACININ RÜCU HAKKI

4760 Sayılı Özel Tüketim Vergisi Kanunu’nun 7/2-b maddesinde belirlenen engelli tanımı kapsamında bulunanların özel tüketim vergisinden muaf tutularak araç alımları kolaylaştırılmaktadır. Maddede belirtilen engelli kapsamına çoğunlukla akıl hastası olan kişiler de girmektedir. Akıl hastası bu kimselerin kısıtlanması için genellikle sulh hukuk mahkemesine başvurularak vasi atanması istenilmektedir. 4760 Sayılı Kanun uyarınca vergiden muaf olan araçlar kısıtlı adına alınarak bu kişiler malik olmakta, çoğu zaman da vasi bu aracı kullanmaktadır. Ancak motorlu araçlar işletilmesi sebebiyle her an tehlike yaratma ihtimali içindedir. Kısıtlı adına alınan aracın kazaya karışması durumunda akıl hastası kısıtlının ve vasinin sorumlulukları farklılık arz eder. Çalışmamızın konusunu kısıtlının malik olduğu aracın kazaya karışması halinde, zorunlu mali sorumluluk sigortası kapsamında kısıtlı ve vasinin zarar görene karşı sorumluluğu oluşturmaktadır.

Sin Tax And Special Consumption Tax Implementation in Turkey

Sin Tax And Special Consumption Tax Implementation in Turkey

ICCAT Inspections in Turkey and Turkey's National Legislation Compliance With the ICCAT Recommendations

It was determined that bluefin tuna fishing within the scope of the International Commission for the Conservation of Atlantic Tunas (ICCAT) inspections was carried out in accordance with the 19-04 ICCAT Recommendation in Turkey. In the swordfish fishery, it was observed that the 16-05 ICCAT Recommendation was not completely compatible with Turkey’s national legislation. In the 16-05 ICCAT Recommendation; the fishing gear was determined as the longline in swordfish fishery, the length of the pelagic longlines and the number of hooks were limited, the minimum weight limit was set on swordfish, and the transshipment operations at sea of swordfish was prohibited in the fishing season. However, these legal regulations were not available in Turkey’s national legislation. The following issues could be evaluated as the reasons why these regulations were not included in Turkey’s national legislation; the majority of the fishing vessels engaged in swordfish fishery in the seas of Turkey are less than 12 meters in total length, the fishing vessels of 12 meters in length or more can only use the first fishing gear, the length of pelagic swordfish longlines and the number of hooks used in Turkey are far below the regulations set forth in 16-05 ICCAT Recommendation, the caught swordfish are landed as a whole, and the majority of swordfish fishery vessels stay for a day or 2-3 days for fishing at sea. The ICCAT inspections in the swordfish fishery were carried out according to the 16-05 ICCAT Recommendation in Turkey. The necessary information and incentives should be provided for the fishing vessels of less than 12 m in length, which had obtained swordfish fishery permits, to use fuel without special consumption tax, in order to monitor them electronically via Vessel Tracking Module. In order to control the quota in swordfish fishery, it should be obligatory to use a paper logbook for fishing vessels less than 12 meters in length. In addition, an application can also be made to install a Vessel Monitoring System on fishing vessels less than 12 m that will catch swordfish.

Prevention of illicit fuel activities in maritime: case study of Turkey

ABSTRACT This study examines the measures taken to prevent illicit fuel activities in maritime with particular focus on the case of Turkey. While creating the analytical hierarchy for the study, interviews and meetings were conducted with members of the Anti-Oil Smuggling Committee of the Ministry of Trade, representatives of foreign missions, and the academicians and students of maritime colleges. The weights of the criteria and sub-criteria were calculated together with the expert group serving on the anti-smuggling committee using the Fuzzy Analytic Hierarchy Process (AHP) and the alternatives were ordered using the Fuzzy Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. Most important suggestion is found special consumption tax relief & taking of quantities into account in fines.

Club Convergence in Cigarette Consumption and Health Policies in Pre-Pandemic Period

Aim: Turkey introduced price and non-price measures in recent years to reduce smoking. The government banned smoking in all enclosed workplaces and public places. Then, they extended the ban to include all restaurants, cafeterias, and the hospitality sector in 2009 and increased the Special Consumption Tax dramatically on tobacco products by 20 percent in 2010. This study aims to examine regional disparities in cigarette consumption across Turkish cities employing provincial-level data by utilizing a club convergence test. Material and Methods: We report some descriptive results for the smoking trend for sub-regions of Turkey. Then, we explore regional disparities in smoking across Turkish provinces, employing monthly provincial-level data, through a club convergence test in pre-pandemic period, 2009-2017. Results: Our results suggest that the initial effects of the anti-tobacco policies resulted in a substantial decline in smoking. It seems that distinct regions behave differently to the policy changes in a way that some areas reduce their cigarette consumption considerably while some regions did not. Club convergence test results demonstrate that it is not proper to conduct a common tobacco control policy in Turkey since there is more than one convergence club in the analyses. Conclusion: We encourage authorities to decentralize power by including local agencies and municipalities in enforcing the anti-tobacco law. We urge authorities to take different policy measures for different regions. Besides, from a pandemic perspective, one can argue that the regional disparities in cigarette consumption is also a signal for the need of diversified health policies across regions in Turkey.

Impact of Indirect Taxes on Income Distribution

When the macroeconomic objectives of the countries are analysed, these aims include economic growth and development, economic stability, balance of payments, fair income distribution and resource allocative efficiency. Among these objectives, while developing countries generally give priority to economic growth at a certain rate, the priority of developing countries is to reach a certain level of development. Although economic growth and development are the most important priority, achieving this aim alone does not mean that it is economically successful. In addition to growth, giving a common share from the growing economy to the whole society increases economic prosperity, contributes to social development, positively affects social peace and causes acceleration of economic growth. However, if the market is left to itself, it is possible that the income generated as a result of economic growth will be un equally shared among the society. For this reason, the idea that the government intervenes in the market and allocates the income as it should be being a highly defended subject in the literature.There is no doubt that the state needs certain instruments when allocating income among economic actors in the market. These instruments consist of public expenditures, taxes and debt. When the situation is examined in terms of taxes, it can be said that direct taxes such as income tax and corporate tax are more effective in the redistribution of income-wealth. On the other hand, indirect taxes such as value added tax and special consumption tax are estimated to negatively affect income distribution due to the contrary progressivity. In this study, the effect of indirect taxes on income distribution has been examined in Turkish economy. As a result of the study, it was determined empirically that indirect taxes negatively affect the income distribution in the analysed period of 1990-2017. This shows that implementation results are in line with theoretical expectations. This shows that, application results and theoretical expectations are adaptive.

Impacts of Excise Taxation on Non-Alcoholic Beverage Consumption in Vietnam

Vietnam is faced with the issue of increasing overweight and obesity, particularly among children and adolescents in urban areas. As a result, the government of Vietnam recently introduced a proposal to impose a special consumption tax on sugar-sweetened beverages (SSB) in Vietnam, as the drinks are causing negative health consequences for Vietnamese people. This research is aimed at evaluating the impacts of a 10% special consumption tax on SSB in Vietnam using the Almost Ideal Demand System (AIDS) model. We found that a 10% SSB tax will reduce SSB consumption by 11.4%. Consumers will switch to substitutes, leading to an increase in the consumption of milk by 2.3%, beer by 2.5%, dried tea by 2.2%, and wine by 1.7%. However, in the short run, the tax could lead to a decrease in consumer welfare due to higher SSB prices. In addition to people from better-off households, people from the ethnic majority group, most of which live in urban areas with a large number of children, have a relatively high welfare reduction.

Bebidas azucaradas y su importancia en la legislación ecuatoriana

El Impuesto a los Consumos Especiales (ICE) es una medida de ajuste económico adoptada por varios países con la finalidad de obtener un cambio en los patrones de consumo de la población, como para alcanzar equilibrio fiscal en la economía local. En este artículo se explican las consecuencias, de tipo tributario y productivo, ocasionadas a partir de la aplicación de la Ley para el Equilibrio de las Finanzas Públicas, expedida en Ecuador en abril del año 2016. Como parte de la metodología se emplean métodos de investigación documental de tipo no experimental a partir de la teoría económica (Seteras Paribus). La discusión de los resultados revela la necesidad de que las autoridades gubernamentales revisen la carga impositiva en función al consumo de este producto de consumo masivo y al grado de enfermedades que ocasiona los ecuatorianos.

TRIP Steel for Automobile Industry in Vietnam

When Vietnam joined the World Trade Organization (WTO), we made a non-discriminatory commitment between home-made goods and imported goods, so the great protection of domestic manufacturing enterprises is not can exist. Special consumption tax is only a historical period and will have to be adjusted, as this time transport infrastructure is still poor, people's living standards are not high. Particularly for domestically produced cars, it is not much affected by import tax, but still subject to SCT by the number of seats and cylinder capacity in accordance with the Law on Special Consumption Tax. As for value added tax (VAT), we should not mention much because most consumer products in Vietnam apply a VAT rate of 10%. The application of tariffs aims to encourage businesses to increase localization rates, and at the same time develop the automobile industry, aiming at export. Therefore, businesses need to try to save production and business costs, properly account market price. Vietnamese consumers are still "expecting" after 2018 to buy cheap cars because the import tax on complete cars will be reduced to 0%. However, in contrast, some comments also suggest that at that time most of the domestic car manufacturers and assemblers will turn into importers.

TRIP Steel for Automobile Industry in Vietnam

When Vietnam joined the World Trade Organization (WTO), we made a non-discriminatory commitment between home-made goods and imported goods, so the great protection of domestic manufacturing enterprises is not can exist. Special consumption tax is only a historical period and will have to be adjusted, as this time transport infrastructure is still poor, people's living standards are not high. Particularly for domestically produced cars, it is not much affected by import tax, but still subject to SCT by the number of seats and cylinder capacity in accordance with the Law on Special Consumption Tax. As for value added tax (VAT), we should not mention much because most consumer products in Vietnam apply a VAT rate of 10%. The application of tariffs aims to encourage businesses to increase localization rates, and at the same time develop the automobile industry, aiming at export. Therefore, businesses need to try to save production and business costs, properly account market price. Vietnamese consumers are still "expecting" after 2018 to buy cheap cars because the import tax on complete cars will be reduced to 0%. However, in contrast, some comments also suggest that at that time most of the domestic car manufacturers and assemblers will turn into importers.

El sector licorero del Ecuador frente a las medidas tributarias impuestas

Esta investigación realiza un análisis del sector licorero el que representa un importante rubro de la economía ecuatoriana, mismo que está integrado por importadores y productores locales que en muchos casos recurren a la importación de bienes para la elaboración de sus productos. A nivel mundial los estados buscan mejorar su recaudación fiscal para la ejecución de obras o mejoramiento de los servicios entregados a la ciudadanía, en el Ecuador con este fin se aplican una serie de tributos como impuesto al valor agregado IVA, impuesto a los consumos especiales ICE, aranceles a la importación, salvaguardias, impuesta a la renta IR, entre otros. El presente estudio se enfocó en el sector importador por la serie de medidas tributarias aplicadas desde el 2009 hasta diciembre 2015, para a partir de su aplicación analizar el desempeño de las importaciones. Los gravámenes arancelarios, el ICE, el IVA, salvaguardias

The Comparison of Fuel Taxes between Turkey, EU and OECD

In this article, the Special Consumption Tax on fuel products was researched and compared with OECD and EU member countries and economic effects were explained. In Turkey, Special Consumption Tax (SCT) and Value Added Tax (VAT) are mainly based on fuel products. When Turkey is compared to the OECD countries, the taxes on fuel products are ranked the 7th highest after Israel, the Netherlands, the United Kingdom, Italy, Finland and Greece. When Turkey is compared with 28 EU countries, the average weighted tax rate for 28 EU countries is 66.37%. In Turkey, this ratio is 66.59%. When we look at EU tax rates on diesel and per liter, EU average tax rate is 61.47%. In Turkey, this rate is 60.61%. From these results we see that the rate of the tax on diesel in Turkey remained below the EU average tax rate. However, the fact that the current tax practice in Turkey is higher than the income and corporate taxation has resulted in a burden on some sectors and a slowdown in economic development.

Fiscal Drag as an Automatic Stability Tool, in the Case of New Regulation with Price Criteria in Automotive Sectors Special Consumption Tax (SCT)

Fiscal drag is a result of real or nominal expanding economy and progressive taxation. In general, individuals are forced to enter the upper tax bracket depending on their increased income or expenditure. More tax burden can result in less consumption. Fiscal drag, lack of spending or excessive taxation can cause the economy to slow down. Traditional view suggests that fiscal drag may serve as a natural automatic stabilizer to cool the economy. However, this view ignores the supply side and in particular the potential effects of the high tax burden on economy. This study examines the extent to which the expected automatic stabilization function can be performed and the possible side effects on economic balances and income distribution of fiscal drag in our country in the case of new regulation with price criteria in automotive sectors Special Consumption Tax (SCT).

Special Consumption Tax Incentive on Marine Bunkers and Cargo Shifting to Short Sea Shipping in Turkish Cabotage Routes

Environment issue is one of the most important problems which must be solved urgently. Today, the effects of climate change linked to global warming have started to come into view. Some gases such as methane (CH4) and carbon dioxide (CO2) which are called as greenhouse gases (GHGs) are seen as the most important causes of global warming. Harmful exhaust gases and CO2 emissions arise out of burning of fossil fuels on board. Maritime transportation is the most efficient mode when compared to other modes. However, Turkey's passenger and cargo transportation mainly depends on road transportation which has high fuel costs compared to sea transportation. In this study, by evaluating cabotage bunker fuels, annual CO2 emissions from maritime ships sailing on Turkish cabotage line were investigated. Also fuel efficiency of maritime transport as well as the effects of shifting cargo between transportation modes on CO2 emissions were analysed.

Determining the Exogeneity of Tax Components with Respect to GDP

In this study we examine the relationship between tax revenues and GDP for Turkey for the period from 2004.Q1 to 2012.Q1. The effectiveness of tax components on GDP are investigated by using Johansen and Juselius (1990) cointegration and Granger Causality test. According to our findings, the main categories of taxes are cointegrated with GDP but the sub categories are not. This results means that more than optimal level of tax is collecting in some sub categories. When determined these sub categories, we have found as result that policy makers should increase Withholding Income Tax. When consider Special Consumption Tax, except Tobacco and Alcohol Products’ SCT, all categories of Special Consumption Tax should be increased.

Consumer response to economic crisis and lessons for marketers: The Turkish experience

Private consumption is the largest component of gross domestic product (GDP). It has a substantial impact on the speed of recovery from an economic crisis. This paper aims to examine the behavior of consumers, firms, and government in Turkey in response to the recent global economic crisis. Turkey was one of the few countries that emerged from the economic downturn relatively quickly. The demographics of consumers, the solidity of financial sector, and the government policies led to a speedy recovery from the crisis through an increase in consumption expenditures. During the initial shock, consumers switched to cheaper goods and decreased consumption expenditures in total. The government emphasized that the impact of crisis would be limited. The opening of credit lines, the temporary reduction in value-added tax and special consumption tax on certain commodities, aggressive marketing campaigns, and a rosy future drawn by chambers of commerce and NGOs in specific promotional activities were influential in increasing consumption. This paper discusses the consumer response to and the marketing lessons derived from this experience.

신용카드사용이 세수에 미치는 영향에 대한 연구 :소비세를 중심으로

While the increase in credit card usage is thought to augment tax revenue by livening up trades, to date, there have not been any specific studies or significant analyses regarding this subject. To remedy this problem, this study will attempt to test the theoretical link between credit card usage and its effect on tax revenue, and analyze it in depth. In theory, the increase in credit card usage is deemed to have an effect on tax revenue by increasing trade transparency and income and expenditures; the prior, through the identification of the sources of tax revenue, and the latter by providing convenient loan grants and opportunities for trade. Since the usage of credit card makes the transaction record everytime, activation of the usage would reveal the transactions in black market which could be hidden under the cash transaction. Also, activation of the credit card usage could enhance the stability of household consumption more securely, because by using the credit cards the household could achieve ‘consumption smoothing’ with the credit support which is provided by the credit card company. Our regression result shows this fact boldly. In fact, credit card usage supports the ‘consumption smoothing’ even in the economic recessions, which are occurred by unexpected economic crisis such as foreign exchange crisis that was happened in 1997 in Korea, and sub-prime level mortgage crisis of America in 2008. Thus, we could induce the conclusion that activation of credit card usage could broaden the tax base, in turn, lead to boost up the tax revenue. After thorough analysis of tax revenue and credit card data, in was revealed that the increase in credit card expenditures led to a significant increase in VAT revenue. In other words, while the effects that credit cards have on tax revenue will differ according to time, based on the 2009, if credit card usage increased by 1%, VAT revenue would also increase by 0.75%. The regression results also show that other taxes which are closely related with credit card transactions, such as voluntary notify income tax, as well as transportation tax, special consumption tax, might affect on the revenues from each tax positively. However, due to the couple of limitations of data, the regression results are not reliable, since the test statistics indicate that the results are statistically insignificant. One of the interesting results of this study is that the activation of credit card usage could help to achieve in revenue stability. Increasing in the usage of credit cards would be able to mitigate the fluctuations in consumption from business cycle, and there stabilize the consumption tax revenue.

Effect of policy changes on cigarette sales: the case of Turkey

In 1996, Turkey made tobacco control a health priority. The tobacco control effort was extended in July 2009 with the expansion of the smoke-free law to include all enclosed workplaces and public places and, in January 2010, with a 20% increase in the Special Consumption Tax on Tobacco. Sales data were averaged, by month, for the period January 2005 through June 2009 to establish an 'expected' monthly sales pattern. This was the period when no new tobacco control measures were implemented. The overall monthly average was then calculated for the same period. The expected monthly sales pattern was then graphed against the overall monthly sales average to delineate a seasonal sales pattern that was used to evaluate the divergence of actual monthly sales from the 'expected' pattern. A distinct seasonal pattern was found with sales above average from May through August. Comparison of actual cigarette sales to the 'expected' monthly sales pattern following the implementation of the expanded smoke-free law in July resulted in a 5.2% decrease. Cigarettes sales decreased by 13.6% following the January 2010 Special Consumption Tax. Since the implementation of the expanded smoke-free law in July 2009 and the tax increase in January 2010, cigarette sales in Turkey decreased by 10.7%. The effect of recent Turkish tobacco control policies could contribute to a reduction in the number of premature deaths related to tobacco use. Evidence has shown that periodic tax increases and strong enforcement of all tobacco control policies are essential to further decrease tobacco consumption.

Taxing Consumption in Jamaica

In Jamaica, as in most countries, consumption taxes in the form of a value-added tax called the general consumption tax (GCT) and several excise taxes collectively known as the special consumption tax (SCT) are critically important revenue sources, accounting for 37.4 percent of total revenues in fiscal year 2003-2004 (27.7 percent for GCT alone) and an estimated 11.2 percent of GDP (8.3 percent for GCT alone). This article describes in some detail the present structure and administration of the GCT and SCT and then evaluates the performance of these taxes from several angles—their revenue effects, their distributional effects and their relation to the shadow economy, their administrative aspects, and their relation to various international considerations. It concludes by setting out a number of recommendations for reform.