Turkey Adjusts Fuel and Tobacco Taxes as Part of Inflation-Reduction Support Plan

The Turkish government has approved new adjustments to excise taxes on several goods, including fuel, tobacco, and alcoholic beverages, in a move aimed at supporting monetary policy and enhancing price stability in the coming period.

Turkish President Recep Tayyip Erdoğan issued a decree to increase fixed excise taxes on several key goods, notably fuel, tobacco, and alcoholic beverages. However, the hikes were lower than the recent pace of producer price inflation, in an effort to mitigate the inflationary impact on consumers.

According to the decree published in the Turkish Official Gazette, taxes on gasoline and diesel increased by approximately 6.95%, while taxes on cigarettes and alcoholic beverages rose by around 7.95%, with the increases kept at moderate levels compared to previous data.

This move is part of a broader economic strategy aimed at aligning fiscal policy with the objectives of the Central Bank of Turkey, which seeks to reduce inflation to more sustainable levels in the medium term, amid expectations of a moderation in price pressures compared to previous years.

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