Turkish gov’t expects $1.2 billion of income from recent tax, price hikes
REUTERS photoTurkish government expects to gain around 3.6 billion Turkish Liras ($1.2 billion) of income from recent tax hikes in alcohol, cigarettes and mobile phones, and hikes in bridge and highway tolls, a senior economy official told Reuters on Jan. 5.
The official said around 3 billion liras of income is expected from the tax hikes in alcohol and cigarettes, which came into effect Jan. 1, adding that an additional 300 million liras of income is expected from the recent hike on special taxes for mobile phones.
The minimum fixed tax rate on tobacco products increased by 5.1 percent to 4.42 liras, while the fixed rate increased by 25 percent to 0.25 liras to mark the new year. The minimum fixed tax rate for beer has been increased by 0.18 liras to 1.03 liras. The minimum fixed tax rate for two liters of rakı has increased by 23 liras to 130.68 liras. Price hikes have followed these tax raises in the country.
Electricity prices also increased by 6.8 percent as of Jan. 1, just two days after the minimum wage saw a 30 percent increase.
A special tax added to mobile phone sales has also been hiked up by 30 percent to 160 liras.
Bridge and highway toll prices in Turkey have also been raised for the first time since 2012, with an increase of 16 percent. The new prices were effective as of Jan. 3.
The official said an additional 300 million liras of income is expected from the hike in bridge and highway tolls to the state budget.