Personalization in Value Added Tax in ensuring tax justice in the Turkish tax system

In the Turkish Tax System, taxes are collected in line with certain taxation principles such as efficiency and equity. The foremost principle among these taxation principles is equity, also known as justice. Taxpayers are subject to taxation through both direct taxes levied on income and wealth, and indirect taxes imposed on expenditures. Value added tax, as an example of an indirect tax, constitutes a tax type that is uniformly imposed on everyone without being adjusted according to individuals' ability to pay. VAT, being an indirect tax, does not align with the principle of equity, as it leads to an uneven distribution of the tax burden among taxpayers.Tax policies implemented particularly after the year 1980 have resulted in significant increases in indirect tax rates. The introduction of VAT in 1985 has further escalated the prominence of indirect taxes within the tax system. This is due to the fact that VAT contributes to a substantial majority of tax revenues. The study examines and assesses the VAT within the Turkish Tax System in terms of tax equity. The evaluation specifically addresses the issue of personalization associated with VAT. Recommendations regarding the personalization of VAT for the purpose of achieving tax equity are scrutinized within the evaluation. Lastly, drawing inspiration from the Canadian solution and Koldor's model of personal consumption tax, an attempt is made to propose an income-indexed personal value added tax as a means of establishing tax equity within the tax system.