Turkey’s Finance Ministry will have special units to probe fuel smuggling

Turkey’s Finance Ministry has geared up to increase its investigations into fuel smuggling, which is estimated to cost the economy billions of dollars every year, and other illegal activity in the sector. In addition to inspections to ensure the use of a fuel marker, a chemical added to fuel to ensure its authenticity, the Finance Ministry is now establishing specially trained units to combat tax evasion in the sector. The major reason for rampant tax evasion in the fuel business is the extremely high tax rates on fuel products. Nearly 69% of the cost of a liter of gasoline is taxes. The bare cost of a liter of gasoline is TL 1 (US$.68), which includes all expenses and the distributors’ profit, according to a study. However, it is being sold for TL 3.26 (US$2.23) per liter. (August 25, 2009)