Minimum wage announced, a wave of price hikes begins; alcohol and cigarette prices to rise on January 3
With the announcement of the minimum wage, citizens are expected to face a wave of price hikes. The first increase arrives on January 3 for cigarettes and alcoholic beverages. The price hike was announced by Özgür Aybaş, President of the Monopoly Dealers Platform.
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New year price hikes for alcohol and cigarettes are just around the corner. Following the minimum wage increase determined for 2024, price hikes for alcoholic beverages and tobacco products have also come to the agenda.
Özgür Aybaş, President of the Turkey Monopoly Dealers Platform, warned that the increases could drive citizens toward illicit products.
The new minimum wage, announced on December 24, 2024, was set at 22,104 TL. However, the Special Consumption Tax (ÖTV) increase coming to alcohol and cigarette prices at the start of 2024 has already sparked a debate about the impact of this rise on citizens.
According to information provided by Özgür Aybaş, a 30 percent hike is expected for alcohol, while an increase of 5-10 TL is expected for cigarettes.
In accordance with the regulation published in the Official Gazette via a Presidential Decree, the minimum specific excise tax amount for alcoholic beverages was increased from 1,269.73 TL to 1,428.44 TL. The tax amount on hookah tobacco was raised from 0.34 TL to 0.56 TL. Including company-led price adjustments, the total price increase is expected to reach 30 percent.
RISK OF ILLICIT PRODUCTS INCREASING
Turkey Monopoly Dealers Platform President Aybaş stated that this tax increase could heighten the risk of counterfeit and illicit products in the market. "Price hikes may drive citizens toward cheaper and uncontrolled products. This situation endangers public health," said Aybaş, noting that companies have also halted shipments due to the price transition and that products are being released to the market in limited quantities.
A RAIN OF HIKES ON CIGARETTES
Regular price hikes on cigarettes are on the agenda for the first month of 2024. Aybaş anticipates that prices will rise by between 5 and 10 TL due to the Special Consumption Tax (ÖTV) increase and cost-related hikes that occur every six months for cigarettes.
Aybaş stated that the price hikes are progressing in parallel with the minimum wage increase, but warned that if similar increases occur in basic consumer goods, the purchasing power of citizens could decline. He called for a balanced economic policy, noting, "The price hikes may overshadow the minimum wage increase."