Turkish taxes on oil surpass EU countries

Turkish taxes on oil surpass EU countries

Neşe Karanfil ANKARA
Turkish taxes on oil surpass EU countries

AA Photo

As global crude oil prices continue their freefall, taxes implemented on refined oil in Turkey have surpassed almost all 28 European Union countries due to a complex taxing methodology, according to a report by the country’s energy watchdog, EPDK.

The tax burden on oil stood at 66 percent, according to the EPDK’s report for December, which is equal to the Netherlands, the EU’s tax leader in the sector. The U.K. is just one point behind.

The tax on oil stood at 56 percent in September, before it rose to 61 percent in October and 62 percent in November.

Turkey implements a static amount of 2.17 Turkish Liras in special consumption tax on each liter of oil. An additional value-added tax of 18 percent is also added to the amount. This causes an increase in the tax ratio when the prices go down.

As consumers complain that oil prices do not decrease as sharply as the fall in crude, the Finance Ministry calculates an annual value-added tax loss of around 2.7 billion liras (1 billion euros) if the crude prices remain at around $60 per barrel.