(Adds government official, details, background)
ANKARA Dec 1 Turkey has raised the special
consumption tax on alcoholic drinks and tobacco products,
according to a notice in the government's Official Gazette on
Thursday, a move one official said would push up prices by some
The increase coincides with a sharp decrease in the lira
currency, which is likely to stoke inflation, which at 7.16
percent is sharply above an official target of 5 percent.
The fixed tax on alcoholic drinks, excluding wine and
similar beverages, will be increased by 10 percent. That is
expected to push their prices up by 3-4 percent, the government
official told Reuters following the announcement of the
increases, which went into effect from Thursday.
Tobacco prices will increase by an average of 5-6 percent
following a 0.07 lira ($0.02) hike in the tax on tobacco
products, the official said. The price of a packet of cigarettes
was set to rise by around 0.50 lira as a result of the tax move,
In November, the Turkish lira had its worst month since the
2008 financial crisis, hit by a resurgent U.S. dollar, and
concern about a widening crackdown after a failed coup.
($1 = 3.4327 liras)
(Reporting by Orhan Coskun, Mehmet Dinar; Writing by Daren
Butler; Editing by David Dolan)