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Comment by CSDude | Hacker News Reader

It used to be OK. However, recent increase and the longer increase with start of Covid started to amplify in all goods. Even bread is now 1.5/2x more expensive, restuarants are 2x expensive compared to 1YR, because of cascading increases in every industry, mostly transportation and goods. For instance, the wood for the kitchen is increased almost 3x in 6 months according to our guy.

Tech workers are mostly in good spot, (great if working remote). However, in Turkey, minimum wage is almost average wage. I feel very bad for most people, and try to give anyway I can.

Car prices are ridicolous. I could almost buy a Tesla Plaid in US at the price of a BMW 320 here. But it's due to high taxes. These taxes were introduced in the '99 earthquake, meant to be temporary. But those taxes are everywhere, named like "Luxury Consumption Tax".

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> But those taxes are everywhere, named like "Luxury Consumption Tax".

Are those taxes effectively targeting products that are imported?

It's classic trick to improve the trade deficit.. I would guess that getting rid of them would only further crags the currency.

I think in general luxury goods taxes are underexploited. People normally want to buy expensive things so they can show off how much money they have. May as well make them more expensive, and divert some of that cash to useful purposes.

Maybe... My point was that often these taxes are actually targeting imports, and not necessarily "luxuries".

Well, that also depends on how you define luxuries :)

I personally don't mind taxes, but consumption taxes, even on "luxury items" are generally likely to be regressive in nature. So maybe don't use them...

>likely to be regressive

I'm not sure. I was just looking for some points of comparison, and as far as I can gather, tampon tax (the standout example for regressive luxury taxation) wasn't actually a luxury tax, but rather a tax on 'unnecessary' items. Which is - ech - but, you know, it's not an extra tax.

I think explicit taxes on higher-price items within categories (so like, expensive cars) would be kinda nice, because it avoids all of the fiddly questions over what is and isn't an luxury item.

> May as well make them more expensive, and divert some of that cash to useful purposes.

It’s very easy to wipe out an entire market by over taxing it, and lose not only the luxury tax, but also all the normal taxation. Not to mention all the black and grey market activities you incentivise.

> Are those taxes effectively targeting products that are imported?

Nope, pretty much anything that is not deemed basic biological need has some amount of Luxury Consumption Tax, or ÖTV.

Alcohol, electronics, cars, fuel ,communication services, communication devices, cola and similar drinks, cosmetic, newspapers etc.

The rate and the items will change all the time. Especially for the fuel, it's used as a buffer to keep gas prices stable as the Turkish lira and oil prices fluctuate. Currently the luxury tax on gas and diesel is 0 because they gradually reduced it to keep the price somewhat stable as the oil prices soar and the Turkish lira falls. When the oil prices were low and the lira was strong, Turkey had the most expensive fuel prices in the world. Currently, it's the cheapest in Europe.

99 taxes are only a part of it.

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