Environmental Service Taxes

Environment taxes have been one of the effective economic tools in solving environmental problems. Although there is not any direct tax under the name of environmental service taxes in Turkey, some existing taxes have an environmental character in terms of their effects. Although there are not any financial instruments used for environmental purposes in Turkey, some taxes in the Turkish tax system are environment taxes due to the effects they produce..

Are Environment Taxes Applied in Turkey?

As pointed out, there is not any direct tax type called environmental service tax in Turkey. However, special consumption tax, motor vehicle tax and environmental cleaning tax are evaluated within this scope. These tax types, which can be included as environmental service taxes, are within the scope of natural environmental taxes due to environmental effects. For this reason, the fact that special consumption tax, motor vehicle tax and environmental cleaning tax do not include environmental issues in terms of implementation will be effective in determining the importance of environment taxes. In order to determine the importance of environment taxes, the shares of countries in total taxes were examined. While the share of environment taxes in total taxes varies between 3-10% in OECD countries, this rate is around 17% in Turkey. This is entirely based on our tax system.

What are Environmental Cleaning Taxes?

Environmental service taxes, refer to the mandatory and non-refundable environmental service taxes, which are collected in exchange for the services provided. Environmental service taxes, known as taxes on environmental pollution, are applied as a compensatory tax type applied to people who pollute the environment as a result of commercial activities. The implementation of this tax usually results in higher taxes for those who do more harm to the environment and lower for those who do less harm to the environment. In addition, environment taxes are applied not only to individuals and institutions engaged in productive activities, but also to consumers who cause environmental pollution. Apart from these, the environmental cleaning tax, also known colloquially as the garbage tax, is collected by the municipalities.

Environment taxes or carbon taxes, commonly known as pollution taxes, have been introduced in order to increase the sustainability of the environment to achieve sustainable development. The main purpose of the carbon tax is to protect the environment and nature for sustainable development. In addition, carbon taxes are used as a policy to reduce the tax burden on labor and generate income. The basic principle of EU environmental tax reforms is to reduce taxes on labor and capital, while reducing activities that pollute the environment or increase the use of natural resources.