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ANKARA, Dec 1 (Reuters) - 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 3-6 percent.
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, he said
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)