The revaluation rate (YDO), which will determine the increase in taxes, fees and penalties at the beginning of the year, is going to a record. The revaluation rate, which will be announced according to the inflation figures in October, is expected to reach 120 percent. In the meantime, if a revaluation rate is applied to the increase in the income tax brackets, the tax payable by the employees will explode.
According to the Tax Procedure Law, the revaluation rate is determined according to the Domestic Producer Price Index (D-PPI) for October. This will be evident with the inflation data to be announced on November 3rd. Inflation data announced for September show that the revaluation rate will be high. Even if producer prices do not increase at all in October, it is stated that the rate to be applied next year will be 121.08 percent.
Motor Vehicles Tax (MTV), Real Estate Tax, Income Tax, Environmental Cleaning Tax, Inheritance and Gift Tax, Stamp Tax, fees, traffic fines, administrative fines, vehicle inspection fees are determined according to this rate.
The President has the authority to reduce the rate on some taxes, such as MTV. The rate to be applied in taxes, fees and penalties for this year was 36.2 percent. But the president had reduced the rate to 25 percent on MTV.
On the other hand, the President does not have the authority to reduce the rate of fines. Administrative fines, traffic fines, whatever the rate will increase. For example, the penalty for running a red light was 427 TL for this year. If the rate is announced as 121.08 percent, this penalty will increase to 944 liras. Not wearing a seat belt, wrong parking penalty was 196 liras. These will rise to 433 liras.
Passport fees for those with a duration of more than 3 years were 1478 liras. If the President does not use his authority to lower it, the fee will increase to 3 thousand 267 liras next year. When the sales price of 225 lira is added to this, the figure will skyrocket to 3 thousand 492 liras.
EARNINGS GOES TO TAX
The revaluation rate is also very important for Income Tax deductions from workers. Income tax brackets should also be increased at this rate. For example, 15 percent Income Tax has been applied up to 32 thousand TL for this year. Above that, the tax rate increased to 20 percent. If the rate is declared as 121.08 percent, the first tranche should be increased from 32 thousand to over 70 thousand for the next year so that the tax deducted from the laborer is fair.
.