Shock Therapy in a Turkish manner

Friday morning, July 7, prepared for the Turks not only another namaz but also new prices. For everything. Some changes will hurt foreigners who live permanently in the country. In particular, to Ukrainians and Crimean Tatars fleeing war or Russian mobilization.

VAT in Türkiye it is called KDV. There were three tax rates in the country. Last year, it was reduced from 8% to 1% for 115 items of food for constant use. These are bread, milk, meat, fish, pasta, rice, tea, coffee, vegetable, and fruits. All other food and goods and services kept the rate of 8%, and furniture, household appliances, cars, fuel, alcohol, and cigarettes were sold with a tax of 18%.

From Saturday, the tax on goods that were sold at the rate of 8% will increase to 10%, and those that had 18% will have 20%.

In addition, soap, shampoos, and other cosmetic products and household chemicals, which were sold at the rate of 8% VAT, will now be charged 20%. Their tax was equated to VAT on alcohol and cigarettes.

Excise. Turkish ÖTV. Türkiye imposes an excise tax on the price of cigarettes, alcohol, jewelry, and fuel. From Saturday, the rates for all excise taxes will increase. Sozcu journalists calculated that alcohol worth 500 lira (20 dollars), has more than 350 lira of all the taxes added.

In particular, the excise tax increases by almost 15%. On average, a liter of gasoline or diesel increases in price by half a lira.

From now on, the excise duty in Türkiye will increase automatically every six months, depending on the level of inflation. But there is another surprise - the president will receive new powers to single-handedly increase this tax by 5 times. Previously, he could change the rate by only 50% without a decision of the parliament.

All state fees have increased by one and a half times: for obtaining a passport and a visa, changing other documents, etc.

Transport tax or MTV in Turkish. It was 1,060 lira and was paid at the beginning of the year. This year, owners of "motor tax" will have to pay it again. While they say that this is a one-time promotion.

And finally, something that interests many Ukrainians. In Türkiye, a mobile phone purchased outside of Türkiye can work on a local SIM card for up to 90 days. After that, its IMEI is blocked by a government agency called BDK. Mobile phones in Türkiye cost more than in any other country, so Turks even went on "phone tours" to other countries, and then unlocked the phone after paying a tax.

In 2022, to unlock any phone, regardless of its value, it was necessary to pay 2,300 lira - 150 dollars at the then exchange rate. From 2023, the tax on a foreign phone was 6 thousand liras - 300 dollars at the exchange rate on January 1, and from July 8 you will have to pay 20 thousand liras or 800 dollars at today's exchange rate for an imported phone.