Turkey Suspends Diesel Tax Amid Economic Adjustments

Turkey will temporarily remove the consumption tax on diesel until August to alleviate economic pressure. A presidential decree outlines the reintroduction of the tax, incrementally increasing until January, and excludes diesel from the sliding-scale tax system. Gasoline and LPG taxes remain until October's scheduled system abolishment.

In a significant move to manage rising oil prices and inflation, Turkey has announced a temporary suspension of the special consumption tax on diesel until the end of August, as per a presidential decree.

The decree, published in the Official Gazette, indicates that starting September 1, the diesel tax will gradually increase by 3 Turkish lira ($0.0628) each month. This incremental rise will continue until it reaches 13.9006 lira per liter on January 1, restoring it to previous levels.

While diesel is removed from Turkey's sliding-scale tax adjustment system, gasoline and LPG will remain under this system until October 1, when the arrangement is expected to be terminated.