Turkey adds 15.5 pct tax to alcoholic beverages

Neşe Karanfil-ANKARA

An additional 15.5 percent special consumption tax has been added for alcoholic beverages early in July, automatically in line with Turkey’s producer price index in the first half of the year.

Turkey makes tax hikes in alcohol products twice a year according to their share in the domestic producer price index.

The special consumption tax over such products has automatically gone into effect.

As a result, an average increase of 10 Turkish Liras is expected for a 70 cc bottle of the anise-flavored alcoholic drink rakı, rising from 102.1 liras ($21.7) to 112.7 liras ($23.9).

Some 84.3 liras of the expected price tag is charged by the state in the form of various taxes, included value-added tax (VAT) and special consumption tax. One 70 cc rakı now costs more than 7 percent of the minimum monthly wage in Turkey.

Meanwhile, in addition to the semi-yearly automatic tax hikes on alcoholic beverages, in accordance with Turkey’s accession negotiations with the European Union, special consumption taxes for alcoholic beverages were equaled late in May.

While the taxes imposed on rakı, vodka, and gin were increased, taxes for whiskey, liquor and wine were decreased.

Following the latest increases in alcohol taxes, the number of people producing their own drinks has grown across Turkey, according to distributors.