Turkey’s Removal of €30 Customs Exemption Aims to Prevent $2 Billion Tax Loss

Summary:

Türkiye’s decision to abolish the €30 customs exemption on overseas online shopping is reshaping the e-commerce landscape, prompting some international platforms to scale back operations. According to Arabunu.com Founder and CEO Serkan Koç, the move was primarily driven by concerns over an estimated $2 billion annual tax loss.

New Rules Reshape Cross-Border Online Shopping

Türkiye’s e-commerce market is undergoing a significant adjustment following the removal of the €30 duty-free threshold for overseas purchases. The regulation has altered consumer behavior and forced several fast-growing international e-commerce platforms to reconsider their expansion strategies in the Turkish market.

Beyond its immediate impact on shoppers, the decision has reignited debate over tax revenues, budget discipline, and the competitiveness of domestic e-commerce firms.

“Preventing a $2 Billion Tax Loss Was the Priority”

Speaking on Bloomberg HT, Serkan Koç, Founder and CEO of price comparison platform Arabunu.com, said the government’s main motivation was to protect public finances.

“The state had a serious concern. The €30 exemption was abolished in order to prevent a tax loss of approximately $2 billion,” Koç said, describing the measure as fiscally driven rather than protectionist.

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Limited Reversal Unlikely, Targeted Exceptions Possible

Koç suggested that a full reversal of the policy is unlikely, although technical adjustments could lead to limited exemptions in certain areas.

“It is difficult to turn back from this point, but with improvements in hardware and software systems, we may see some exceptions in cross-border e-imports,” he said.

However, he stressed that customs rules alone would not be sufficient to restore balance in the market.

Broader Macroeconomic Measures Needed

Koç argued that the effectiveness of the regulation depends on broader macroeconomic policies, including steps to reduce the budget deficit, curb inflation, and maintain a competitive exchange rate.

“Without inflation-fighting policies and a sustainable currency framework, it will be difficult to establish long-term equilibrium in retail and e-commerce,” he said.

U.S. Precedent Highlights Price Impact

Koç pointed to the United States as an example of how removing duty-free thresholds can affect prices. He recalled that Washington eliminated its $800 duty-free import exemption last year, triggering rapid price increases.

“Customs duties are directly reflected in prices,” he said, adding that goods previously imported duty-free are now selling at nearly double their former prices in some cases.

Chinese Platforms Expected to Stay

Despite the regulatory shift, Koç said he does not expect major international players to exit Türkiye entirely—particularly Chinese e-commerce platforms, which view the country as a strategically important market.

“Chinese platforms will continue operating in Türkiye by maintaining their local presence. There is a market here, and they do not want to miss it,” he said.

However, Koç emphasized that continued access to the Turkish market must come with equal competitive conditions.

“If they remain, they will need to pay taxes and compete on the same footing as domestic companies,” he said.

Competitive Balance at the Center of Debate

The removal of the €30 exemption is increasingly seen as a test case for Türkiye’s approach to balancing consumer affordability, tax collection, and fair competition in the digital economy.

While the policy has drawn criticism from consumers facing higher prices, government officials and industry representatives argue that it is a necessary step to protect public revenues and support domestic e-commerce players operating under full tax compliance.

Source: Bloomberg HT

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