TESK Warns of Cigarette and Alcohol Price Hikes: Palandöken Says Tax Increase Will Fuel Illegal Production

Bendevi Palandöken, the President of the Turkish Confederation of Tradesmen and Craftsmen (TESK), has warned that the recent hikes in Special Consumption Tax (ÖTV) on cigarettes and alcohol will lead to an increase in illegal production and sales. Palandöken called for the tax increases not to be passed on to prices.

Palandöken emphasized that the ÖTV hikes, which have pushed the prices of cigarettes and alcohol to astronomical levels, would increase illegal production and distribution. He stated, “These tax hikes will exacerbate illegal activities, which will, in turn, reduce the government’s revenue. The tax increases should not be passed on to the consumer because prices are already high, and this is contributing to the rise in illegal production. Around 20% of tobacco, tobacco products, and cigarettes, as well as 10 million liters out of 50 million liters of alcohol, are consumed illegally.”

Illicit Cigarette Trade Results in a 100 Billion TL Tax Loss

Palandöken further noted that the illegal trade of cigarettes results in a tax loss of approximately 100 billion TL, and the losses in alcohol are also substantial. He pointed out that the increasing difficulty in accessing alcohol legally has led to the rise of illicit homemade alcohol production, with many people risking their lives by consuming these dangerous products. Palandöken added, “In 2024, cigarettes saw six price hikes and alcoholic beverages received two, resulting in astronomically high prices. People are now turning to alternative methods, such as purchasing tobacco to roll their own cigarettes or making alcohol at home. Unfortunately, improper measurements in these homemade alcohol products have led to numerous fatalities.”

Rising Prices Contribute to Increased Illegal Production

Palandöken called on the Ministry of Finance to act cautiously and ensure that the ÖTV increases are not passed on to consumers, warning that further price hikes would worsen the problem of illegal trade. He also urged citizens to be more vigilant, stressing that purchasing products without official tax stamps or from unreliable sources could be life-threatening. “These seemingly cheap products can lead only to sorrow and tears,” he said.

Palandöken concluded by emphasizing that necessary steps must be taken to prevent the rise in illegal production, reduce the impact of tax hikes on prices, and raise awareness among the public. He warned that unless action is taken, illegal traders will continue to harm the national economy with large-scale illicit products.