Record price hike for rakı

Since the Domestic Producer Price Index (D-PPI) increased by 25.6% in the second half of 2023, the minimum specific tax amount levied on alcoholic beverages has also increased by the same rate. The Revenue Administration (GİB) specifies the Special Consumption Tax (ÖTV) amount collected on alcoholic beverages in the list numbered III. The ÖTV amount in the rakı section includes the ÖTV on pure alcohol and was at the level of 845.9684 Turkish Lira per liter. This amount was increased by 25.6% to 1062.53 Turkish Lira.

With these hikes, the retail price of a 70cl bottle of rakı has approached 700 Turkish Lira. While the tax-free retail price of a 70cl bottle of rakı is 247.78 Turkish Lira, adding the 334.60 Turkish Lira minimum specific tax brings the price to 582.38 Turkish Lira. With the addition of 20% VAT, the price of a 70cl bottle of rakı rises to 699 Turkish Lira.

While the tax-free retail price of a 1-liter bottle of rakı is accepted as approximately 353.97 Turkish Lira, the retail price exceeds 1000 Turkish Lira after adding tax and VAT. When the 478 Turkish Lira minimum specific tax is added to the 353.78 Turkish Lira tax-free retail price, the figure rises to 831.97 Turkish Lira. With the addition of 20% VAT to this, the retail price rises to 997.39 Turkish Lira. Of this price, 643 Turkish Lira is derived from taxes.