• June 12, 2024

Turkey shelves tax hike

 Turkey shelves tax hike

Turkey will refrain from hiking tobacco and alcohol taxes in the first half of 2020, reports Reuters.

The tax increase is generally imposed automatically each year in line with producer price inflation. But Turkey’s Official Gazette published a presidential decision saying it would not be implemented in the first half.

Economists said the move would curb inflation, which tumbled throughout 2019 from multi-year highs in the previous year. Meanwhile, the impact on the budget is expected to be limited. BCG Partners estimates the loss of revenues for the central government would be around 0.1 percent of gross domestic product.

Last week Turkey raised the minimum wage to put more money into consumers pockets.