Remarkable tax rates on alcoholic beverages!

Erol Dündar, President of the Monopoly Dealers’ Assistance Association (TBYD), said that cigarette prices will be increased by around 2 TL due to the cost increases in August, and that a hike of 10-15 percent may be seen in alcoholic products.

According to the Turkish Statistical Institute (TUIK), cigarettes and alcoholic beverages have been increased many times during the year due to the inflation, which is based on 80 percent.

Tax Expert Ozan Bingöl, who shared on the subject on his social media account, evaluated the high tax rates on alcoholic beverages as an intervention to income-oriented taxation and lifestyle, away from protecting public health.

Bingöl’s tweets are as follows:

“The high taxation on alcohol products has nothing to do with protecting public health. Basically, only an ‘income-oriented’ taxation approach has emerged and even the SCT on alcohol has turned from being a tax policy tool to a direct lifestyle intervention tool.”

RANKED TAX RATES ONE BY ONE

Drawing attention to the high rate of taxation in the continuation of his sharing, Bingöl shared the following information:

“A 70 percent raki with 45% alcohol;

-Product price including dealer profit and other expenses: 94.12 TL

-SCT 189.78 TL

-VAT 51.10 TL

-Total tax 240.88 TL

-The recommended selling price is 335 TL.

In other words, by paying 241 lira of tax for a product worth 94 liras, we get it for 335 liras.”