Staple foods, whose VAT did not increase, also got their share of the increases

When the increase in tax rates since the beginning of this month was added to the exchange rate increases to which citizens are constantly exposed, a new rain of increases began in all products.

While the Value Added Tax (VAT) rate of 8 percent on processed food products was increased to 10 percent, the VAT on basic unprocessed food products remained unchanged at 1 percent. .

However, rising costs due to both increased taxes on all other products and new record levels in the exchange rate began to push up retail food prices.

Speaking to Sozcu.com.tr, Food Retailers Association board member Erdal Tüfekçi said that the latest developments have created upward pressure of 15 to 17 percent on the prices of food products with a 1 percent VAT, along with all retail products; He said that as of today new price lists will begin to be reflected to the public.

To this will be added the increase in the costs of gasoline and diesel, which has increased by 6-7 TL per liter after the increases in the Special Consumption Tax (SCT) taken from fuels.

Yüksel Rabbit, President of the Turkish Transport Federation, and Mustafa Karlı, President of the Istanbul Food Wholesalers Association, noted that the increase in the liter of diesel from 26 TL to 33 TL will lead to an increase of at least 20 TL. percent in the prices of fresh vegetables and fruits and dry foods starting this week.

FUEL IMPACT ON VEGETABLE AND FRUIT PRICES

Conejo said that the main determinant in the prices of fresh vegetables and fruits is agricultural production, and according to the information they received from the field, there is no serious problem in yield this year, so the prices of the products that will increase production will also do so. loosen up.

However, after the sharp increase in the SCT taken from fuel, the price of a liter of gasoline and diesel increased by around 6-7 TL.

Taşvan drew attention to the fact that a liter of diesel that exceeds 33 lira, depending on the provinces, will lead to a sharp increase not only in transportation costs, but also in costs at all stages of agricultural production, and said:

“Diesel is used not only for our transportation costs, but also in all stages of agricultural production. Therefore, this situation, which will have a serious impact on costs, will inevitably increase the prices of vegetables and fruits.”

“I cannot say that tomatoes will go from 3 lira to 5 lira, but there is no possibility that the prices will not increase,” Conejo said, adding: “As the increase in the SCT taken from fuel increased the price of bomb. of diesel by more than 20 percent, the increase in prices will also be at these rates”.

TENSION RUNS FOR WHOLESALE FOOD

Mustafa Karlı, who pointed out that the development that will affect prices more than the 2-point increase in VAT rates is the increase in the SCT on fuel, pointed to the 20 percent rate, similar to Rabbit, and said: “ Transportation is a serious cost for us. The rate of fuel increase also affects products sold at the same rate. New price transitions will also become apparent this week,” he said.

Rentable also said: “The tax rate on basic foods, whose VAT is 1 percent, did not change, but when the tax on all other products increased, prices also increased. The new records in the exchange rate are as effective as the tax increase. There is already a limited offer. The current environment from wholesale food is a bit tense,” he said.

‘THE TAX AND EXCHANGE WILL BRING THE HIGHEST INFLATION’

Price increases in retail food prices are increasing not only because of increased tax rates, but also because of new record levels in the exchange rate and rising labor costs due to the interim increase in the minimum wage effective of July.

Pointing out all these factors that also affect retail prices as costs rise, Erdal Tüfekçi said: “We expect July to be the month with the highest inflation.”

On the other hand, according to Reuters news, economists expect a 10 percent CPI increase in July due to the increase in post-election tax rates and the new depreciation in TL.

In addition, it is considered that it is inevitable that the CPI at the end of the year rises from 50 to 60 percent.