The increase in the Special Consumption Tax for fuel, cigarettes and alcohol has been announced

The Turkish Statistical Institute (TurkStat) announced the inflation data for June 2025. With the announcement of the June inflation by TurkStat, the inflation rate for the first month has become clear. The rate that occurred in the first half of the year also revealed the SCT increase that will be applied in the second half of the year. June inflation was announced as 1.37 percent, and the 6-month inflation was 15.71 percent. With the announcement of the June inflation data, the special consumption tax (SCT) rates automatically applied to fuel, cigarettes and alcoholic beverages were also determined. With the announced inflation figures, the SCT of fuel, cigarettes and alcoholic beverages will also increase by 15.71 percent, i.e. the 6-month PPI rate. It is expected that the fixed SCT amounts for gasoline and diesel will be updated tonight in line with the PPI increase. With the possible increase, an increase of approximately 2 TL may be reflected in pump prices. With the expected increase, a price increase of approximately 2.26 TL is expected for gasoline and 2.12 TL for diesel. The SCT increases are applied automatically, but it is possible to limit these increases with a presidential decree. Previously, the SCT increase expected in January was limited to 6 percent by a presidential decree. Treasury and Finance Minister Mehmet Şimşek's statement in recent weeks, "We will observe the target inflation in the prices determined by the public," brought the possibility of a new intervention to the agenda.

On the other hand, the lowest cigarette price is expected to increase by between 8 and 10 liras. The Lump Sum Tax applied per pack of cigarettes was increased from 10.50 TL to 12.1495 TL, and the Minimum Lump Sum Tax was increased from 36.63 TL to 42.378 TL. The reflection of cost increases on the retail sales price of cigarettes has been limited with the regulations made by the economy administration since 2024 within the scope of the fight against inflation. The coefficient called the "fiscal multiplier", which shows how many times the costs will be reflected on the prices, is still twice the level of the EU average. Experts state that continuing these tax regulations in the coming period is of critical importance in the fight against inflation. Indeed, Treasury and Finance Minister Mehmet Şimşek said in a statement he made at the end of last year, "In managed and directed prices, fuel SCT is important, and SCT on tobacco products is also important. Since the others have no or very limited effect on inflation, we evaluate them in a separate framework. We look at the budget from a revenue perspective, but we will seriously consider the Central Bank's 2025 target in other managed and directed prices."

UAV

Reporter: News Center