Bloomberg News

Turkey Raises Taxes on Mobile Phones, Alcohol, Tobacco, Cars

October 13, 2011

Oct. 13 (Bloomberg) -- Turkey raised the tax it levies on alcoholic drinks, tobacco products, mobile phones and cars through a special consumption tax.

The consumption tax rate on cigarettes rose to 69 percent from 63 percent, according to a directive published in today’s Official Gazette in Ankara. A flat tax on beer rose to 0.53 liras ($0.29) per liter from 0.44 liras and to 19.82 liras per liter for sparkling wines from 16.12 liras.

Deputy Prime Minister Ali Babacan, who leads economic policy for the government, will announce the government’s new three-year economic plan at a news conference in Ankara today. He’s promised that the budget for 2012, when growth is expected to slow, will support the central bank’s efforts to reduce the current-account deficit.

The special consumption tax rate rose for all non-electric passenger cars with engines larger than 1.6 liters. The new tax levels ranges from 15 percent to 130 percent, up from 10 percent to 84 percent.

For mobile phone sales, the tax rate rose to 25 percent from 20 percent. A flat tax of 40 liras on mobile phone sales went up to 100 liras, Bloomberg HT reported.

--Editor: Aydan Eksin

To contact the reporter on this story: Steve Bryant in Ankara at

To contact the editor responsible for this story: Andrew J. Barden at

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