An analysis of the relationship between credit card expenditures and tax revenues in Türkiye

In the economic system, which has dynamically renewed itself from past to present, credit cards, which have recently gained function as a means of payment, have significantly facilitated the money management of economic actors. Credit cards, whose usage area and number are increasing day by day, are preferred instead of currency thanks to the opportunities they offer. In addition to the positive aspects of credit cards such as accelerating economic life, they also have negative aspects such as causing unnecessary consumption expenditures. The aim of this study, which examines the development, positive and negative aspects of credit cards, is to analyze the impact of credit card expenditures on tax revenues. Using monthly data for the period 2003-2021, this study analyzes the impact of credit card expenditures on tax revenues in Türkiye using cointegration tests with structural breaks. The main reason for using structural break tests in the study is the desire to take into account the effects of pandemics, earthquakes and other rare events during the period. The results of the study reveal that there is a long-run relationship between credit card expenditures and tax revenues in Türkiye. According to the findings, as credit card expenditures increase in the long run, tax revenues also increase.