Liquid fuel taxes and analysis of Turkey

Petrol is an important energy source. In paralel with technological development dependence to and demand for petrol increased. Especially petrolium products are indispensible both for consumption and production and are one of the basic inputs in all industries. Especially transportation industry depends heavly on petrolium products. Over half of the petrolium products are being used in transportation sector. Petrolium products are taxed both for economic and environmental reasons. Among the world, petrolium products are taxed in different bypes and in different ways. In Turkey, taxes on petrolium products are important in budgetary financing. In particular VAT and excise tax on petrolium products yield a great amount of tax revenue. But at the same time, these taxes cause a very high tax burden on petrolium products. These taxes make the petrolium products of Turkey one of the most expensive ones throughout the world. This high tax burden, at the same time, causes several economic and social issues. Key Words: 1. Petrolium Products 2. VAT 3. Excise Tax 4. Tax Burden 5. Unregistered Economy