ANKARA: Turkey has raised its special consumption tax on fuel by 6%, according to a presidential decree published in the Official Gazette on Tuesday. The move comes as the government aims to manage inflation while maintaining fiscal stability.
The tax adjustment, implemented every six months based on the producer price index (PPI), reflects a cumulative five-month PPI increase of 7.12%. Despite the hike, Finance Minister Mehmet Simsek assured that recent tax measures on fuel and tobacco are designed not to affect Turkey’s inflation goals for 2025.
Fuel taxes often impact inflation significantly. However, Minister Simsek reiterated that the adjustments are aligned with maintaining the country’s economic targets. The annual inflation rate, which stood at 47.1% in November, is expected to ease to 26.5% by the end of 2025, according to a Reuters poll, though still above the central bank’s projection of 21%.
The next PPI update, expected on January 3, will provide further clarity on economic trends and tax policies. This move underscores Turkey’s commitment to balancing inflation control with economic growth.
