Assessment of tax expenditures in taxes levied on revenue

State provides eases to some groups or persons via state expenditure and in order to do that state needs income. One of the ways to provide income is taxes. When state determines its finance policy it uses tax system as an instrument by increasing or decreasing tax rates, and enacting new provisions or changing them. However, sometimes state policies bring additional burdens for taxpayer and don?t serve to state objectives. For this reason, state prefers to provide eases for some fields and encourage private sector instead of financing state expenditure by collecting tax. These eases and promotions causing a decrease in tax income level are named as tax expenditure. In this study, it is aimed to find the tax expenditure volume of individual and corporate income tax in Turkey by using tax statements. In this scope, first, the concept of tax expenditure is addressed. Afterwards, tax expenditure practices of some countries are analysed. Finally, the lists of tax expenditures are compared with the income tax and corporate income tax statements. As a result of this comparison based on tax statement numbers the amounts of individual and corporate income foregone revenue of the state is calculated. Key Words: Tax Expenditure, Negative Tax Expenditure, Analysis of Tax Expenditure, Measure Methods, Budgeting