Flash decision from tobacco retailers after cigarette price hike! They may stop selling them...

Özgür Aybaş, President of the Tobacco Retailers Platform, announced that there has been a 5 TL price hike on cigarettes. With this increase, the price of the cheapest cigarette has risen to 50 TL, while the most expensive cigarette now costs between 55 and 57 TL.

Stating that profit margins on cigarettes are low, President Aybaş made a statement on social media. Noting that illicit consumption is on the rise, Aybaş announced the new decision.

In a statement made via his X account, Aybaş said, "Cigarette companies are providing limited stock to us retailers; retailers have limited supplies, and many do not even have cigarettes in stock at all. These companies, which restrict cigarette sales in a way that does not fit commercial ethics, are victimizing everyone. With bank POS commission rates exceeding 3 percent, the profit margin, which is an essential rule of trade, is going entirely into the banks' coffers. If we charge a 1-2 TL difference on cigarette sales, we are labeled as commission agents. Even if we want to process a transaction with a credit card at a vehicle inspection station today, they charge a 3 percent commission, while the profit margin on cigarettes is 4.5. The Ministry of Trade and the Competition Authority must urgently intervene in this unfair competition."

"WE ARE CONSIDERING A DECISION TO STOP SELLING"

Noting that the profit margin on cigarettes needs to be increased, Aybaş said, "When we purchase cigarettes from wholesale chain stores and similar places, we, as TAPDK-licensed retailers, pay a difference. The cigarette profit margin must be urgently increased, taking into account bank POS rates for retailers. On behalf of the Turkey Tobacco Retailers Platform, cigarette turnover is becoming a burden for us tobacco retailers; consequently, the increasing tax burden forces us to maintain balance sheets, and accounting expenses become costly for us, doubling in price. In this situation, the tax burden of costly cigarettes should be kept separate from the annual turnover. Excessive price hikes drive consumers toward illicit and low-quality tobacco; the same applies to alcohol. The cigarette profit margin is very low, and as tobacco retailers, we are considering a decision to stop selling any tobacco products with low profit margins across Turkey. In this context, the increasing pressure and penalties are an added burden, and bank credit card commissions are very high, approaching 3.5 percent."

"IT IS NOT ETHICAL WHEN WE ASK FOR A DIFFERENCE, BUT WE LOSE MONEY WHEN WE DON'T"

Aybaş's statement continued as follows: "When a customer wants to buy cigarettes with a card, we end up selling at a loss once the deduction is included. It is not ethical when we ask for a difference, but we lose money when we don't. Even chain wholesale markets deduct a 1 percent commission from us licensed retailers. Our profit margin is constantly falling. In the last 4-5 years, there have been very high price hikes on alcohol and cigarettes. This has led to an extreme increase in illicit consumption. Every street corner has places selling loose tobacco, and the public is lining up. In their own view, and rightfully so, cigarettes have entered the luxury consumption category. Of course, we are not encouraging smoking, but these figures are disproportionate to the minimum wage. They believe that by basing it on state-stamped products, they are deterring sales and that consumption is decreasing, but they are mistaken. Because the consumer has turned to illicit products. As the name implies, illicit products have no records; as prices rise, the sale of stamped products decreases, and this uncertainty negatively affects our motivation for work."