Abstract:

Taxation comes at the beginning of the funding resources that the state needs in order to replace its original and other duties. Taxation is not only a public income but also an important means of political, financial, social and economic influence. In this regard, tax revenues, which make up a significant part of the government’s income and have an effective role in the economic and other fields, are of great importance in terms of what factors are affected and determined by countries. In fact, the study and analysis of tax revenues on the basis of Turkey, which is the cause or result of many economic phenomena or events and is also the most important funding tool of the state, has formed the main outcome point of this study. The aim of this study is to identify the factors that determine tax revenues in Turkey and to analyze the effects of these factors on tax revenues. Due to the data limitation of the analysis, the provinces were categorized on some basis between 1990 and 2001, and between 2004 and 2011 on the basis of 26 Development Areas. According to the results of the analysis, the national income level per person in Turkey, the share of the industrial sector in the national income, the share of the service sector in the national income and the degree of commercial external transparency positively affect the tax income.  On the contrary, in Turkey, it has been found that the agricultural sector is not regionally efficiently taxed and has a negative impact on tax revenues. In the same way, public spending has a negative impact on regional tax revenues.

Abstract:

Taxes are among the main sources of finance needed by a state to fulfil its essential and other duties. Taxes are not only a public revenue, but they are also an important tool that has an effect in political, financial, social and economic scales. In this sense, the factors that affect and determine the tax revenues, comprising an important part of a state’s revenues and having an influential role in both economy and other fields, carry a huge importance for countries. Thus, the basic starting point of this study is to examine and analyse tax revenues, which are the reason or result of various economic facts or events and which are the most important source of finance as well, on the basis of Turkey. The purpose of this study is to identify the determinants of tax revenues and analyse the effects of these determinants on tax revenues. Due to the data constraint in Turkey, the analysis has been categorized on the basis of provinces between the years of 1990-2001 and on the basis of 26 Development Regions between 2004 and 2011. According to the results, GDP per capita, the shares of industry and service sectors in GDP and the ratio of export plus imports to GDP positively affect tax revenues in Turkey. On the other hand, it has been identified that taxes are not collected by efficiently in agriculture sector on a regional scale and that this process affects tax revenues in a negative way. Similarly, public expenditures also affect the regional tax revenues negatively.

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