Turkish cigarettes are taxed to death but are relatively cheap globally. This year, the Turkish government increased the tax on cigarettes 3 times. The new tax rate is now around 86% per pack. Thus, Turkey now has the highest taxes in the world on cigarettes. The total tax consists of a Special Consumption and Value Added Tax (OTV & KDV).
However, the cost of a packet of Marlboro cigarettes is around 18TRY ($3.15). This is relatively cheap compared to the rest of the world. Compare this to Australia at $23.00 for the same pack. Turkey is even cheaper than all the EU countries including Bulgaria. In addition, it is ever cheaper than many duty free stores around the world. For instance, in Germany’s duty free shops, a similar pack of Marlboro is selling for around $5.50.
In Turkey, the locals are complaining about the increases, of course. For lower income consumers who make about $352 a month, it has been especially shocking. The cheapest brand of cigarettes is now around $2.10. Many low income consumers are now starting to roll their own cigarettes. Also, some are turning to the black market from Georgia. Cigarettes cost about half in those countries at around $1.68
However, while walking around Istanbul, people are smoking everywhere. Also, there are cigarette butts all over the streets. Therefore, it obvious, addicted consumers will keep paying regardless of the tax increases.
Why is Turkey raising the taxes on cigarettes?
- Increase tax revenue to help reduce the budget deficit
- Reduce pollution and littering
- Increase public health
- Reduction of imported cancer and other related drugs
- President’s anti-smoking view
All in all, Turkish cigarettes are taxed to death but relatively cheap. Nowadays, Turkey’s economy is fairly sluggish so overall tax revenue is down. Thus, the easiest way to collect is through things people like.
