Tax system and tax reforms in Turkey

Abstract

Tax systems are shaped according to the economic, social, legal, and administrative structure of a country. For this reason, alteration in any structure causes small revisions or significant changes in tax systems. Tax reforms facilitate the adaptation of the system to innovation. The Turkish tax system has reached its current structure by going through many stages that can be considered both as minor changes and as reform. They have had many effects. In this study, determining these effects and their results, the general structure of the Turkish tax system has been evaluated, problems have been identified and recommendations have been presented. Like the structure of a modern tax system, the Turkish tax system is also based on income, consumption, and wealth taxes. Especially in the period after 1950, many taxes were announced and after 1980, steps were taken appropriate to international policies. Besides the positive developments, due to frequent changes the system has become complicated, unjust, and unenforceable. In this reasons, “New Generation Tax System” should be created for simpler and more understandable tax structure which consists of especially the net accretion theory, the minimum subsistence allowance, fewer exemptions and exceptions, and wide tax base.