After the Turkish Statistical Institute (TUIK) announced the DPPI change rate as 7.55 percent for the July-December period, if no Presidential decision is published, the SCT on alcohol and cigarettes will also be increased by this rate. While the fuel excise tax was increased by 6 percent on December 31, it was decided that the automatic increase would not be applied in the first half of 2025.
New Special Consumption Tax amounts, according to calculations made by Hüseyin Gökçe from ECONOMY; At least 2-2.5 lira will be reflected in the price of cigarettes and 100 lira for 1 liter of raki. These increase rates were calculated only based on the increase due to SCT. It is stated that liquor and cigarette companies may raise higher prices, taking into account expenses such as energy and labor.
75 LIRA CIGARETTES WILL INCREASE BY AT LEAST 2.5 LIRA
If the Ministry of Finance does not determine a different amount and rate in the Special Consumption Tax list No. III, with the 7.55 percent increase in Special Consumption Tax, the minimum fixed tax of 1.7026 lira on cigarettes will increase by approximately 13 kuruş to 1 lira 8312 kuruş. The minimum fixed tax amount of 1 pack of cigarettes will increase from 34.05 lira to 36.62 lira. The minimum lump sum tax amount shows the amount of tax collected per package, regardless of the sales price. However, approximately 99 percent of cigarettes sold in the market are priced to be taxed above the minimum lump sum tax amount.
The specific tax amount collected per pack of cigarettes increases from 7 lira 80 kuruş to 8 lira 38 kuruş. In other words, the fixed tax amount of 1 pack of cigarettes will increase by around 58 kuruş. Cigarette companies are expected to reflect this as 2.5 lira in the sales price. However, it is stated that the increase in cigarette prices will be higher as companies add the changes in energy costs and labor costs to their sales prices.
TAX RATES CHANGED AND THE MULTIPLIER EFFECT WAS REDUCED
The tax rate on cigarettes was reduced from 63 percent to 57 percent with the regulation made at the beginning of last year. In the same decision, there was a high increase in fixed tax. Before this regulation was made, the impact of a 1 lira increase in cigarette costs (tobacco, energy, labor, etc.) on the sales price was at the level of 7.5 lira. The multiplier effect is now calculated as 5.2 lira for every 1 lira increase.
The tax burden on 1 pack of cigarettes currently sold for 75 lira will be as follows:
Sale price 75 TL
Relative tax (57 percent): 40.13
Fixed tax (per package): 8.39
Relative+Fixed:48.51
VAT (on sales price): 12.50
Total tax burden: 61.01
Dealer margin: 5.25
Cigarette company share: 8.74
1 LITER OF RAKI WILL EXCEED 1350 LIRAS
The Revenue Administration (GİB) also explains the SCT (minimum fixed tax amount) collected from alcoholic beverages in list number III.
The SCT amount in the raki section of this list is the SCT of pure alcohol. The amount in question was 1269.72 lira per liter. If the Ministry of Finance does not determine a different rate, this amount will increase by 7.5 percent to 1365.69 lira. Thus, the Special Consumption Tax collected from 1 liter of raki with 45 percent alcohol level will increase from 571.37 lira to 614.56 lira.
The tax-free sales price of a liter of raki was approximately 417 lira last year. By adding the minimum lump sum tax of 614.56 lira, the price before VAT becomes 1058.56 lira. With the addition of 20 percent VAT, the sales price of 1 liter of raki will exceed 1270.27 lira. However, liquor producers are expected to set a sales price higher than this along with other cost increases.
