Turkey increases special consumption tax on tobacco and alcohol products by 47 percent

The Turkish government on Jan. 3 increased the special consumption tax on cigarettes and alcoholic beverages by 47 percent.

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Turkey increased the special consumption tax (ÖTV) on alcohol, cigarettes and other tobacco products by 47 percent on Jan. 3, Turkish media outlets reported.

The firms will decide how much of this increase will be reflected on the consumers. 

No statement has been yet issued with regards to the special consumption tax on other goods.

The alcoholic beverages and tobacco component makes up 4.88% of the inflation basket. Cigarettes make up 4.57% of that component.

Tax expert Ozan Bingöl said that the 326,99 liras special consumption tax imposed on one liter of rakı increased to 481,98 liras with the latest move. He said that this is “no longer a policy tool of taxation” and that it has turned into “an intervention into the lifestyle” of people, Kronos 34 news site reported.

On Jan. 3, the government-run Turkish Statistical Institute (TÜİK) reported an annual inflation rate of 36.1 percent in December, the highest in two decades, whereas the independent inflation group ENAG put the figure at 82.8 percent.