SCT hike coming for cigarettes! How much will the cheapest cigarette cost?

While cigarette groups have been raising prices one after another in recent days, an SCT hike is also coming in July.

By law, the Special Consumption Tax (SCT) on cigarettes and alcoholic products is increased in January and July by the rate of the 6-month Producer Price Index (PPI).

As reported by Rahim Ak from Habertürk, considering that the Producer Price Index (PPI) for the first 5 months of the year was 17.87 percent as July approaches, it has become almost certain that the increase in the first half of the year will not be below 20 percent.

By law, the SCT on cigarettes is increased in January and July by the rate of the previous 6-month producer inflation (PPI). In these six months, the PPI will not be below 20 percent. Thus, in terms of SCT, the retail sale price of cigarettes cannot be below 60 liras. If cigarette companies do not absorb the tax hike, prices will increase by at least 10 liras.

82 PERCENT IS TAX

The SCT on cigarettes and alcohol will be increased by 20 percent in July. On average, 82 percent of every pack of cigarettes goes to taxes.

THE CHEAPEST CIGARETTE WILL BE 66 LIRAS

There is one more condition regarding the tax on cigarettes. It is required that 57 percent of the sales price is not less than the minimum specific tax (we assume it will rise to 34.2 liras). Thus, in terms of SCT, the retail sale price of cigarettes cannot be below 60 liras. Currently, this figure is 50 liras and the lowest cigarette price is 56 liras. If the 10-lira tax increase is reflected directly, the cheapest cigarette will also be 66 liras.

News Source: 12punto