TRNC income tax collections rose from TRY 2.5 billion to TRY 8.7 billion in one month

According to the Ministry of Finance of the TRNC, income tax receipts rose to TRY 8 billion 686 million in July, compared with TRY 2 billion 533 million in June — an increase of 243%.

At the same time, the budget deficit decreased. In June, the general budget deficit stood at TRY 5 billion 701 million; in July, it fell to TRY 4 billion 403 million — by approximately TRY 1.3 billion, or 23%. The local budget deficit declined from TRY 5 billion 512 million to TRY 4 billion 192 million.

Financial circles attribute the sharp increase in collections to the July salary increases and the 16.95% rise in the minimum wage: higher payments also generate more tax revenue for the treasury. In addition to income tax, receipts from VAT and government fees also increased significantly.

From January to July, general budget revenues amounted to TRY 83 billion 496 million, while expenditures reached TRY 87 billion 361 million; the deficit excluding advances was TRY 3.8 billion. The advance received from the Central Bank of the TRNC during this period amounted to TRY 538.4 million, while aid and loans from Turkey totalled TRY 8.3 billion.