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Türkiye. The increase in the petrol tax is intended to cover the budget deficit

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Turkey raised a tax on gasoline on Sunday to subsidize this year’s budget by 1.12 trillion lire ($42.2 billion), Reuters reported. The budget hole is a consequence of the February earthquake and the May presidential elections.

The additional fuel tax is intended to provide coverage budget deficit, which increased to 263.6 billion lire in the first five months of this year from 124.6 billion lire a year earlier. At the same time, it is predicted that it can also raise inflation, which fell to 38.21 percent. in June from a record level of 85.51 percent. last October.

The gasoline tax rate was raised to 7.52 lire a liter from 2.52 lira ($0.1), while the diesel tax increased to 7.05 lira from 2.05 lire.

Rebuilding the country after the earthquake

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As Reuters explained, the budget deficit is largely due to increased spending ahead of May’s elections in which President Tayyip Erdogan was re-elected for a third term. The increase in the deficit is influenced by the costs of rebuilding the country after the earthquakes in the south Turkeyamounting to more than USD 100 billion. It was also reported that more than 50,000 people died then. people.

Read also: A race against time for cell phones. There were queues of several kilometers at the border

Main photo source: Bilal Kocabas/Shutterstock

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