Economy in Turkey: Big Budget Boost, 200 Billion Lira Expected from New Tax Package

The government’s new omnibus bill is projected to bring a massive 200 billion lira to the state budget. This major financial impact will come mainly from increasing taxes and fees and tightening existing exemptions. According to the impact analysis, the total contribution to the budget could even reach 246 billion lira with a presidential decision.

A major portion of this income is expected to come from reducing employer premium incentives. The analysis shows that lowering the incentive to two points could cut public spending by 97.6 billion lira. In addition, increasing the long-term insurance branch employer share by one point and removing the young entrepreneur incentive will create extra fiscal space. The total financial impact of this change is estimated at around 110.96 billion lira.

Rental Income Exemptions Targeted

Another key part of the proposal focuses on rental income. The current exemption, used by nearly two million taxpayers in 2024, will be significantly narrowed. After the regulation takes effect, that number is expected to drop below 500,000. The estimated impact on the 2027 budget is 22 billion lira based on today’s figures.

Additionally, the ability to deduct loan interest paid for properties rented out will be removed. This measure is expected to bring in around 1.6 billion lira in revenue.

New Fee Structure for Professions

The bill also introduces new professional license fees. For example, private health institutions will be charged between 20,000 and 50,000 lira annually, while dental clinics will pay 20,000 to 40,000 lira. Veterinary clinics and hospitals will pay 10,000 to 40,000 lira. Jewelry businesses will pay 30,000 lira annually, and used car and real estate traders will be charged 20,000 lira.

Additional annual fees will apply to commercial airlines, general aviation companies, and precious metals companies. These adjustments are projected to bring in an extra 4.5 billion lira in revenue.

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