The analysis of economic implications of shift from direct taxes to indirect taxes in Turkish tax sistems

In recent years, especially, discussion of the Turkish tax system has been concentrate on the rapidly increasing importance of indirect taxes in the tax system and this context, on the principle of justice in taxation. Especially, 70% higher than the level of the share of indirect taxes in Turkey have been subject to criticism since 2000. In addition,the weight of indirect taxes is observed as 35% in other developed countries, especially in European Union countries. Certainly, in recent years, the Turkish tax system is felt there is an increase in the share of indirect taxes.A properly designed and efficiently exercised direct taxation system can help to solve an important part of inequality by directly taxing individuals and corporates according to their earnings. However, developing countries, including Turkey, for several reasons, usually rely on indirect taxes rather than direct income taxes for the collection of the government revenue.Aim of this study is observing the reasons of heading from direct taxation towards to indirect taxation in Turkish Taxation System and is stating expressly that this heading how is effect to ekonomic growth, employment, saving and investment, fair distribution of revenue and tax burden, informal economi, structure of consumptin and production Moreover this study is be doing a comparison between Turkey with EU and OECD countries.Key words: indirect taxes, direct taxes, economic implication