The effiency of tax cut in Turkey: The case of white goods sector

Tax incentives are the most important fiscal policies preferred by developed or developing countries to increase their economic welfare. In Turkey, incentive policies are applied to certain sectors in certain periods. In this study, the effect of the Special Consumption Tax (SCT) incentive applied to the White Goods Sector, one of the tax incentive policies implemented in Turkey, on the sales figures of white goods was examined. The sales figures of the products in the white goods sector between 2008 and 2019 and the effects of the months in which the SCT incentive was applied between these years, on the growth and contraction of the sales rates were examined. According to the results obtained, it has been revealed that the months in which the incentive is applied cause growth in the economy in general, and that the contraction is reduced in the months with the incentive period and no growth. The year in which the incentive was applied and the highest growth was achieved was 2017. Due to the excessive growth in 2017, the months in which incentives were applied in 2018 were more unsuccessful than the other months.