The Turkish government is to introduce significant rises in a number of taxes, including a 40 percent rise in personal cars, in line with the new medium-term economic program unveiled Sept. 27.

Finance Minister Naci Ağbal said a draft would be sent to parliament soon to raise corporate taxes in the financial sector from 20 percent to 22 percent.

“We will also make a revision in the income tax system … We will raise taxes in the third income section from 27 percent to 30 percent as of 2018,” Ağbal said at a press conference alongside Deputy Prime Minister Mehmet Şimşek and Development Minister Lütfi Elvan.

Motorized vehicle taxes on private cars will also be hiked to 40 percent in 2018.

“The existing tax system on automotives is based on cars’ engine cylinder volume. We will change this so that it is based on the value of private cars,” Ağbal said.

Up to 20 percent of additional taxes will be imposed for the purchase of new cars, he added.

Turkey increased its special consumption tax on cars last November, applied to all but the cheapest models, in what the finance minister at the time said was a response to demands from the industry. The tax is rated at 90 percent for vehicles with engines between 1,600cc and 2,000cc and 145 percent for cars with engines over 2000cc.

Ağbal also said a 10 percent tax on winnings from lotteries would be hiked from 10 percent to 20 percent, while a special consumption tax will be imposed on cigarette papers.

A 130-item draft law on these tax hikes and various others was presented to parliament late on Sept. 27.