Turkey Keeps Some Tax Hikes Modest to Support Disinflation Drive

Turkey raised fixed excise taxes on fuel, tobacco and alcoholic beverages, setting increases below producer inflation as policymakers seek to support the central bank’s efforts to slow price growth.

The government increased the fixed tax on gasoline and diesel by 6.95%, and on cigarettes and alcoholic drinks by 7.95%, according to a decision published in the Official Gazette on Wednesday.

Turkey adjusts so-called fixed excise taxes twice a year, in January and July, based on changes in the producer price index over the previous six months. The latest hikes were smaller than the increase in producer prices during that period ...