(MENAFN) Türkiye implemented a 6 percent increase in fuel taxes on Tuesday, following assurances from the finance minister earlier in the week that such tax hikes on fuel and tobacco would not interfere with the government’s inflation goals. The decision reflects ongoing adjustments in tax policies as part of broader fiscal measures aimed at managing economic challenges.

According to a presidential decree published in the Official Gazette, the special consumption tax on fuel per litre was raised by approximately six percent. This tax, which is adjusted every six months based on the producer price index, plays a significant role in shaping overall price levels in the economy. Historically, changes in fuel taxes have had a substantial impact on inflation, given their ripple effect across various sectors.

Despite this, Finance Minister Mehmet Simsek emphasized on Sunday that the upcoming tax increases on fuel and tobacco in 2025 would be carefully structured to avoid influencing inflation expectations for the year. His statement aimed to reassure markets and consumers that fiscal policies would align with broader economic stability goals.

Türkiye's inflation rate stood at 47.1 percent in November, exceeding expectations but marking its lowest level since mid-2023. A Reuters poll predicted that inflation could decline to 26.5 percent by the end of 2025, although this estimate remains above the central bank’s forecast of 21 percent for the same period. The divergence in projections underscores the challenges Türkiye faces in balancing tax policies with inflation control.

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