Major Price Hike Coming for Cigarettes and Alcohol

The President of the Turkish Tobacco Dealers Platform, Özgür Aybaş, announced that the Special Consumption Tax (SCT) rates on alcoholic beverages will be increased. According to the regulation, the fixed SCT rate has been raised from 8% to 12.5%. This increase is expected to reflect a 30% rise in the prices of alcoholic beverages in the industry.

According to reports, Özgür Aybaş stated that the new tax regulation will have significant effects on the alcoholic beverage sector. He mentioned that companies are limiting their product distribution by constraining shipments ahead of the price increase. Aybaş emphasized that the expected price increase, which was previously anticipated to be in the range of 20-28%, rising to 30% will seriously impact the market. He also noted that tax increases could lead to an increase in the demand for counterfeit and fake products in the market.

Aybaş warned that rising prices might direct consumers toward cheap but unhealthy products. He expressed concerns about the implications of tax increases for public health and tax revenue losses. He pointed out that these regulations could pose challenges for both consumers and industry representatives.

According to sources, public health could be jeopardized due to counterfeit and fake products, potentially leading to increased tax losses in the market. Aybaş stressed the necessity for authorities to take measures to improve the current situation.

Price increases for cigarettes are also on the agenda. A rise in cigarette prices is expected in 2025. Özgür Aybaş indicated that cigarette prices are set to increase by 5 to 10 lira starting January 3. He noted that price hikes in cigarettes occur annually in conjunction with cost and SCT increases.

The President of the Tobacco Dealers Solidarity Association, Erol Dündar, also stated that a price increase of 5 to 7 lira is anticipated for cigarettes. Dündar mentioned that while the SCT rates have not yet been disclosed, they believe that the increase rates will become clear after the New Year. According to the statements from Aybaş and Dündar, the sector is preparing for new price regulations with the onset of the new year.