03.07.2025 15:33
With the announcement of the inflation data for June, the rates of the Special Consumption Tax (ÖTV) have also been determined. There will be an increase in the 6-month Producer Price Index (ÜFE) rate, which is currently at 15.71%. This increase will be reflected in cigarette prices as a rise of between 8 to 10 lira.
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The Turkish Statistical Institute (TÜİK) announced the inflation data for June 2025. With TÜİK's announcement of the June inflation, the inflation rate for the first month became clear. Along with the rate formed in the first half of the year, the special consumption tax (ÖTV) increase to be applied in the second half of the year was also revealed. The June inflation was announced as 1.37 percent, and the 6-month inflation was 15.71 percent.
INFLATION FIGURES CLARIFY THE INCREASE IN ÖTV
With the announcement of the June inflation data, the special consumption tax (ÖTV) rates automatically applied to fuel, cigarettes, and alcoholic beverages were also determined. With the announced inflation figures, the ÖTV for fuel, cigarettes, and alcoholic beverages will increase by 15.71 percent, which is the 6-month Producer Price Index (ÜFE) rate.
PRICES OF GASOLINE AND DIESEL WILL INCREASE
The fixed ÖTV amounts for gasoline and diesel are expected to be updated tonight in line with the ÜFE increase rate. With the possible increase, there may be an approximate rise of 2 TL in pump prices. With the expected increase, a price increase of about 2.26 TL for gasoline and 2.12 TL for diesel is anticipated. ÖTV increases are applied automatically, but it is possible to limit these increases with a presidential decision. The ÖTV increase that was expected to take place in January was limited to 6 percent by a presidential decision. In a statement made by Treasury and Finance Minister Mehmet Şimşek in recent weeks, he mentioned, "We will consider the target inflation in the prices set by the public," raising the possibility of a new intervention.
A 10 LIRA INCREASE IN CIGARETTES
On the other hand, the lowest cigarette price is also expected to increase by 8 to 10 lira. The fixed tax applied per pack of cigarettes has been raised from 10.50 TL to 12.1495 TL, and the minimum fixed tax has been increased from 36.63 TL to 42.378 TL. With the regulations made by the economic management in the fight against inflation since 2024, the reflection of cost increases on the retail price of cigarettes has been limited. The coefficient, referred to as the "financial multiplier," which shows how many times costs will be reflected in prices, is still at twice the average level of EU countries.
ALSO APPLICABLE TO ALCOHOLIC BEVERAGES
The ÖTV increase will also apply to alcoholic beverages. Accordingly, the ÖTV of 1365.72 lira on one liter of raki will increase by 14.61 percent, resulting in an increase of 199.5 lira, bringing it to 1565 lira.
CRITICAL IMPORTANCE IN THE FIGHT AGAINST INFLATION
Experts state that continuing these tax regulations in the upcoming period is of critical importance in the fight against inflation. Indeed, Treasury and Finance Minister Mehmet Şimşek stated at the end of last year, "In managed and directed prices, the ÖTV on fuel is important, and the ÖTV on tobacco products is also significant, as the impact of others on inflation is either non-existent or very limited, so we evaluate them in a separate framework. We look at it from the perspective of revenue in the budget, but in other managed and directed prices, we will seriously consider the Central Bank's 2025 target," he said.
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