31.12.2025 22:23
In the period from July to December of this year, instead of the expected excise tax update based on the Producer Price Index (PPI) which was anticipated to be over 10%, an increase of 6.95% was implemented for fuel and 7.95% for tobacco and alcoholic beverages.
With the Presidential Decision published in the Official Gazette, the fixed tax amounts for fuel, cigarettes, and alcoholic beverages, as well as the minimum fixed tax amounts, have been redefined.
EXCISE TAX INCREASE RESTRICTED
According to the Excise Tax Law, the excise tax amounts for fuel, cigarettes, and alcoholic beverages are updated every year in January and July based on the change rate in the domestic producer price index (D-PPI) announced by TURKSTAT for the last 6 months.
According to information obtained from the Ministry of Treasury and Finance, with the decision, instead of the expected excise tax update of over 10% for these products in the July-December 2025 period according to D-PPI as required by the Excise Tax Law, an increase of 6.95% for fuel and 7.95% for cigarettes and alcoholic beverages was made, thereby limiting the price increase effect.
Additionally, under the 2026 Central Government Budget Law, the excise tax increase amount for these products is calculated at 7.84%, and it was observed that this decision is in line with both the budget target and the inflation target.
NEW EXCISE TAX AMOUNTS
Before the regulation, the excise tax applied was 13.86 lira for gasoline, 12.99 lira for diesel, 10.64 lira for LPG, 55.5 lira for a pack of cigarettes, 11.57 lira for beers, 56.87 lira for wines, 17.78 lira per degree of alcohol for some high-alcohol beverages, and 15.8 lira per degree of alcohol for raki.
According to the Presidential Decision, the excise tax amounts have been set at 14.82 lira for gasoline, 13.9 lira for diesel, 11.38 lira for LPG, 56.78 lira for a pack of cigarettes, 12.49 lira for beers, 61.39 lira for wines, 19.19 lira per degree of alcohol for some high-alcohol beverages, and 17.06 lira per degree of alcohol for raki.
Thus, with the decision, strong support was provided to the fiscal policy and monetary policy, positively contributing to the disinflation process, and steps were taken to achieve an increase below the inflation projected in the Medium-Term Program.