The Directorate of Revenue Administration of the Ministry of Treasury and Finance has announced the inflation adjustment rate in the Official Gazette dated 27 November 2024. The inflation adjustment rate has been determined as 43.93%.

This will have a significant effect on almost all taxes and dues as well as monetary fines in 2025 such as income tax, motor vehicles taxes, environment taxes, taxation-related penalties under the Tax Procedure Law, stamp duty payable on a fixed basis and the stamp duty maximum limit, passport and land registry dues and various administrative fines.

The inflation adjustment rate will impact the maritime sector directly through fine increases in numerous ways including but not limited to the following:

• Administrative fines for breaches of the Law of Ports

• Administrative Fines for breaches of the Law on the Protection of Life and Property at Sea

• Administrative fines for breaches by Turkish flagged vessels of the ISM Code

• Administrative fines issued to vessels detained twice in a year due to deficiencies detected in PSC inspections in foreign ports

• Administrative fines listed under Article 39 of the Ports Regulation such as fines for breaching marine traffic rules, causing a collision and pollution of the marine environment by oil or other hazardous substances

• Administrative fines to be issued to pilotage and towage service providers for breaching the Regulation on Pilotage and Towages Services

• Administrative fines for breaching the regulations on the carriage of dangerous goods by sea

Administrative fines provided under the Environment Law are also expected to be increased at the adjustment rate including fines applicable in cases of marine pollution originating from vessels. Please refer to our previous client alert regarding the fines that were applicable in 2024. The fine amounts set out therein are all expected to be increased by 43.93%, effective from 1 January 2025.

The updated fine rates will be promulgated by a further circular to be issued by the Ministry of Environment, Urbanization and Climate Change in late December. Please continue watching this space for our client alert to be published once the circular on the increase of marine pollution fines is issued.

Please do not hesitate to contact us for further information on this topic.