Major cigarette price hike on the horizon: Cheapest pack to increase by 11 TL
Following the June inflation data released by TUIK, the 6-month Producer Price Index (PPI) was determined to be 15.71 percent. In line with this rate, the increase in the Special Consumption Tax (SCT) will be reflected as a significant price hike on cigarettes. The price of the cheapest cigarette is expected to rise by 11 TL.
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The Turkish Statistical Institute (TUIK) has announced the inflation data for June. Accordingly, the 6-month Producer Price Index (PPI) increase was 15.71 percent. This rate has paved the way for significant price increases in products linked to the Special Consumption Tax (SCT), primarily cigarettes and alcoholic beverages.
TAXES ON CIGARETTES ARE INCREASING
According to the analysis by Ekonomim columnist Hüseyin Gökçe, with the 6-month PPI reaching 15.71 percent, the minimum specific tax levied on cigarettes has also risen. The minimum specific tax per unit, which was 1.8313 TL, has increased to 2.1189 TL. The minimum specific tax per pack has risen from 36.62 TL to 42.37 TL.
This increase will cause cigarette companies to raise prices to balance the tax burden. Since approximately 90 percent of cigarettes on the market are priced above the minimum specific tax threshold, the impact of the price hike will be widespread.
PRICE HIKES TO BEGIN THIS WEEK
In addition to the SCT increase, manufacturers are also taking into account labor, energy, and other costs, as well as the VAT burden. For this reason, it is anticipated that the price hikes will not be limited to the tax increase alone.
The cheapest cigarette is expected to see a price hike of approximately 11 TL, while other brands are expected to see increases of up to 13 TL. Cigarette groups are expected to notify sales points of the price increases within this week, and the new prices are expected to take effect starting tomorrow.