Turkey has announced it will not be raising taxes on tobacco products or alcohol until the end of the year to help ease the upward pressure on inflation, reports Reuters.

The inflation in Turkey has been in the double digits for the past four years which is why the fixed tax amount of the special consumption tax has been kept at the same level since July 2020, according to Reuters. The government has only been raising prices and taxes on items that have a limited impact on inflation such as fuel prices. Alcohol and tobacco make up 6.06 per cent of the inflation basket with cigarettes weighing in as one of the highest.
The fixed tax will remain unchanged for another six months according to a presidential decree. Is Investment has said that this will lead to the omission of 0.2 per cent impact from alcohol and tobacco prices on inflation by the end of the year, reports Reuters.