Türkiye announced Thursday it’s keeping Special Consumption Tax (SCT) hikes on fuel, tobacco, and alcohol lower than usual for the first half of 2026, skipping the typical increase based on producer inflation to help bring prices down.
According to a presidential decree published in the Official Gazette, instead of matching the increase to the domestic producer price index (D-PPI) over the past six months, which neared 10%, fuel taxes were raised by 6.95%, while tobacco and alcoholic beverages saw a 7.95% hike.
Under Türkiye’s current tax regime, special consumption taxes on fuel, tobacco, and alcohol are revised twice annually, in January and July, based on changes in the producer price index.
Türkiye’s SCT revenue dominated by fuel, tobacco, alcohol
From January to November, Türkiye brought in ₺10 trillion ($232.79 billion) in tax revenue in 2025. About ₺1.79 trillion ($73.02 billion) of that came from Special Consumption Tax (SCT), making up around 17.9% of the total. This includes ₺478.3 billion ($11.13 billion) from fuel, ₺130.2 billion from alcohol, and ₺396.4 billion from tobacco, together adding up to around ₺1.01 trillion, or roughly 56.4% of all SCT revenue.
Before the regulation, excise tax per unit was set at ₺13.86 ($0.32) for gasoline, ₺12.99 for diesel, and ₺10.64 for LPG.
For cigarettes, the per-pack tax stood at ₺55.50. Alcoholic products varied, with beer taxed at ₺11.57 per unit, wine at ₺56.87, high-proof liquors at ₺17.78 per liter per alcohol degree, and raki at ₺15.80.
Under the new decree, these rates have been raised to ₺14.82 for gasoline,₺13.90 for diesel, and ₺11.38 for LPG.
Cigarette tax per pack increased to ₺56.78. Beer now carries a tax of ₺12.49, wine ₺61.39, high-proof liquors ₺19.19 per liter per degree of alcohol, and raki ₺17.06.
Easing tax hikes to stay on track with 2026 inflation goals
According to a statement from the Treasury and Finance Ministry, the decision aims to temper the consumer price impact while supporting macroeconomic policy goals, particularly toward inflation targets set at 16% by the Medium-Term Program and 19% by the Turkish central bank.
Officials emphasized that the tax adjustment aligns with both the central disinflation path and the revenue projections set out in the 2026 central government budget. For 2026 budget planning, an overall increase of 7.84% has been assumed for these tax categories.
In a similar move, the government capped increases in motor vehicle tax (MTV), stamp duties, judicial and administrative fees, and the departure fee at 18.95%, below the official revaluation rate of 25.49%.
The Turkish Statistical Institute (TurkStat) kept the 2025 Consumer Price Index (CPI) weight for alcoholic drinks and tobacco at 3.52% and set fuel and gasoline at 3.32%, making a combined impact of 6.84%.
Source: turkiyetoday