A Comparative Analysis on the Wealth Tax In Turkey and The European Union Countries

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Income and expenditure taxes usually serve a financial function within a country s tax system, while wealth taxation is more about realizing social goals. The wealth taxes have many functions such as correcting the financial imbalances within the society, providing justice and equality in taxation, supplementing the income and expenditure taxes, and contributing to economic performance by increasing wealth efficiency. The purpose of this study is to make a comparison between wealth taxes in the European Union (EU) countries and Turkey, to identify the countries with the highest share of wealth taxes among member countries, and to draw implications for our country by examining country-wise wealth taxes. Findings of the study show that the share of real estate tax in total tax revenues is relatively low in Turkey compared to the EU countries, and there is a potential to collect more taxes by increasing the rate of this taxation or adopting new policies. Inheritance and transfer tax rates are very low in our country as in most EU countries. MVT revenues in our country are higher than most EU countries but it would be useful to rearrange this tax in an environmentally conscious way as the EU countries do.

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tax , wealth taxes , estate tax , motor vehicles tax , inheritance and transfer tax

Celal Bayar University Journal Of Social Sciences

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Celal Bayar University Journal Of Social Sciences