Financial effects of tax incentive practices on the automotive and tourism sector: A review at Borsa Istanbul

Tax incentives which are one of the important elements of general economic policies, are applied to revitalize some sectors, increase investments and profitability, eliminate regional imbalance, revitalize the economy and compete internationally. K.D.V. discount, Ö.T.V. tax incentives, which are implemented in various forms such as exemption, investment discount, tax defferal, discounted import and customs duty applications, have varied from sector to sector and region to region. The study aimed to examine the financial effects of tax incentive practices on the automotive and tourism sectors between 2002 and 2023 but due to. difficulty in accessing data before 2008, companies' data for the years 2008-2023 were taken. Tax incentive applied to the tourism and automotive sectors in order to increase profitability, sales and employment, and to revitalize and develop the sector were discussed, and the effects of the incentives on the financial performances of these sectors were examined using the ratio analysis method. In this context, the importance, scope, characteristics and place of the automotive and tourism sektors in the economy were examined. The incentives applied to the automotive and tourism sectors in our country were evaluated together with their application methods. Liquidity ratios, financial debt ratios, activity ratios and profitability levels of businesses in these sectors were examined and a literatüre study was conducted on these studies. Balance sheet and income statement data of 9 companies belonging to the tourism index and 8 companies belonging to the automotive sector, which will constitute the sample in Borsa Istanbul, fort he three-month periods between 2008 and 2023, were used. The types of tax incentives applied to the automotive and tourism sectors were analyzed together with their dates. The changes in the financial performance of the sectors after tax incentive practices were associated with the events that caused national and international economic crises in the current periods. The analysis showed that in some periods when incentives were applied, they had positive effects on the sales, profitability, financial debt ratios and liquidity situations of the automotive and tourism sectors, while in order periods the sectors were not affected by these practices. Keywords: Automotive Sector, Tourism Sector, Tax Incentive Applications, Ratio Analysis, Financial Performance.