Turkish consumers are bracing for price hikes on a range of goods starting January 1, triggered by automatic tax increases linked to the Producer Price Index (PPI). The adjustments, mandated by the special Consumption Tax (SCT) law, will impact everyday expenses including fuel, tobacco, and alcoholic beverages-though pension and civil servant salaries will not be directly affected. Tax expert Mahmut Aydoğmuş explains the increases are independent of annual revaluation adjustments, signaling a potentially significant impact on household budgets in the new year.
A series of automatic tax increases are set to impact a wide range of goods in Turkey starting January 1, driven by the Producer Price Index (PPI). Cumulative PPI increases from July through November reached 9.53%, and if December data brings the total to around 10.63%, a corresponding rise in Special Consumption Tax (SCT) rates will be triggered.
While these adjustments won’t directly affect pension and civil servant salaries, consumers will see price hikes on items ranging from fuels and tobacco to alcohol and LPG. The changes stem from a mechanism independent of the annual revaluation rate, according to tax expert Mahmut Aydoğmuş.
Automatic Tax Hikes Loom as PPI Climbs
Table of Contents
The SCT law mandates that fixed SCT amounts be increased in line with the PPI. Several key products will be directly affected by these changes, including:
•Diesel, gasoline, and LPG
•Natural gas and petroleum derivatives used in industry
•Tobacco products
•Alcoholic beverages
Increased Tax Burden for Fuel Consumers
If the PPI reaches 10.63%, the new fixed SCT rates are projected to be:
•Diesel: 12.9973 TL → 14.3789 TL
•95 octane gasoline: 13.8642 TL → 15.3380 TL
•LPG: 10.6433 TL → 11.7745 TL
With a 20% Value Added Tax (VAT) applied on top of these amounts, the minimum expected impact at the pump is:
•Diesel: +1.66 TL
•Gasoline: +1.77 TL
•LPG: +1.36 TL
These figures represent the minimum price increase attributable to taxes alone, excluding any potential effects from distribution costs, refinery margins, or currency fluctuations.
Cigarette Prices Set to Rise by Approximately 5 TL
In addition to a 45% proportional SCT, cigarettes are also subject to a fixed SCT, which was raised from 12.1495 TL to 16.00 TL on October 24, 2025. With the new PPI increase, this figure is expected to climb to:
•16.00 TL → 17.7008 TL
This translates to a minimum cost increase of 2.04 TL including VAT, and analysts anticipate this will likely result in a price increase of around 5 TL per pack due to multiplier effects.
Double Hit for Alcoholic Beverages
Significant fixed SCTs also apply to alcoholic beverages. Consumers can expect a minimum price increase of 12.76% on these products at the start of the new year, stemming from both the increase in fixed SCTs and the subsequent VAT application.
Tax-Driven Price Adjustments are Imminent
November’s relatively stable PPI and Consumer Price Index (CPI) figures mask an impending wave of automatic tax increases set to impact consumers in the new year. Prices are expected to rise across a broad spectrum of goods, particularly fuels, cigarettes, and alcoholic beverages, as the tax adjustments take effect. The upcoming changes underscore the impact of inflation on consumer costs in Turkey.
