15% increase in cigarettes

After the big rise in beer prices yesterday, there has been a rise in cigarettes today.

Providing information to Sozcu.com.tr, Turkish Monopoly Dealers Platform President Özgür Aybaş announced that as of today, cigarette rates have increased by between 3.5 TL and 4.5 TL.

Aybaş stated that this increase refers to the varieties of a group of cigarettes, but that other types of cigarettes will be sold at the new list price this afternoon.

THE CHEAPEST RISE AT 30 TL

According to the information provided by Aybaş, a type of cigarette from 30 TL to 34-34.5 TL increased by 13 percent to 14.9 percent.

The cheapest cigarette also increased 30 TL.

THE INCREASE OF 2 TL WAITED WHILE THE 4.5 TL ARRIVED

While cigarette prices were expected to increase by 2 TL, there was a price transition between 3.5 and 4.5 TL.

The automatic SCT increase to be applied to cigarettes and alcoholic beverages became clear after the Turkish Statistical Institute (TUIK) announced inflation rates the day before.

According to the law, the fixed and minimum fixed amounts of SCT in cigarettes are increased at the national producer price rate (D-PPI) every 6 months.

According to data announced by TURKSTAT, the six-month increase in D-PPI was 22.29 percent, and this increase was expected to affect the prices of alcohol and cigarettes.

THE TAX BURDEN IS GREATER THAN 80 PERCENT

Calculating the tax burden on cigarettes after the increase in the SCT, Tax Expert Dr. According to Ozan Bingöl, 16 to 18 branches go to taxes from a pack of cigarettes.

Bingöl used the following statements in his evaluations on his blog site;

“The higher of the relative and minimum fixed figures calculated on cigarettes should be taken into account. For example, if the selling price of cigarettes is 30 TL, since the specific minimum amount of SCT is higher than the relative SCT, the SCT is calculated based on those amounts. To this is added a fixed tax. And then VAT, so 16 to 18 branches of a pack of cigarettes are taxed”.

‘THE MAKTU TAX INCREASES AUTOMATICALLY’

Bingöl also made the following assessments in his article;

“The fixed tax on tobacco products automatically increases every six months in accordance with paragraph 3 of article 12 of the SCT Law. For this increase not to occur, the President must make the decision that there will be no increase. Since no such decision was made, the automatic increase occurred.

Due to the increase in the PPI in the period from July to December 2022, there was an increase in the exchange rate (22.29%) of the Producer Price Index announced by the Turkish Statistical Institute on January 3, 2023 for cigarettes and other tobacco products. , and the Revenue Administration responded to this increase and published the new list on its website on 03.01.2023”