New cigarette price hikes coming Thursday: Increase will be at least 5 TL

The June inflation figures to be announced by the Turkish Statistical Institute (TÜİK) on Thursday will be the deciding factor for the Special Consumption Tax (ÖTV) increase to be applied to cigarette prices. According to the data released for the first five months of the year, the tax hike to be reflected on cigarettes has already reached 12.92 percent, and when the inflation rate for the final month is added, this rate will rise to around 14 percent.

Following the tax increase, it is projected that cigarette prices will rise by between 5 and 8 TL across all brands. Thus, the new prices will bring the accessibility of tobacco products, which have been frequently debated recently due to frequent hikes, back to the agenda.

Tax Expert Ozan Bingöl stated that the main reason for the rise in cigarette prices is the tax burden, noting, "For example, nearly 81% of a pack of cigarettes sold for 80 liras today consists of taxes. In other words, approximately 64.5 liras of a pack of cigarettes sold for 80 liras is ÖTV and VAT."

Driven by high inflation, the successive hikes in cigarette and tobacco products in recent years continue to strain consumers.

News Source: 12punto