* Recent taxes on tobacco to add to inflation
* Tax in housing sector have been adjusted
ANKARA Jan 2 Turkish inflation is expected to
be boosted by 0.7-0.9 percentage points in 2013 as a result of
cigarette price hikes of some 15 percent imposed by several
firms on Wednesday, analysts say.
Turkey raised the special consumption tax on cigarettes to
65.25 percent from 65 percent on Wednesday, with the minimum
fixed tax on a packet of cigarettes set at 3.15 lira ($1.77)
from 2.90 lira, the Official Gazette announced on Jan. 1. The
government also announced a new specific tax of 0.09 lira per
"The initial reaction of one of the tobacco companies,
namely Phillip Morris, was to raise prices by 12.5 percent to 20
percent. If other companies follow in the footsteps of Phillip
Morris, the impact on the inflation rate would be 0.8 basis
points in January," wrote Selim Cakir, chief economist at TEB
Philipp Morris, is one of the leading tobacco firms in
A new system updating the fixed tax on alcoholic drinks and
cigarettes automatically on the basis of producer prices every
January and July also went into effect on Jan. 1.
"The tax increases on cigarettes were included in the
medium-term programme," an economy official told Reuters, adding
that these increases were important to reach budget targets.
In its medium term programme, the government expected a
budget deficit of 33.5 billion lira ($19 billion) for 2012 and
33.9 billion lira for 2013. In January-November period this
year, the budget deficit stood at 13.3 billion lira.
($1 = 1.7838 Turkish liras)
(Reporting by Orhan Coskun; Writing by Seltem Iyigun)