Turkey Implements 200% Fuel Tax Hike to Address Budget Deficit and Earthquake Damages

Turkey has raised its special consumption tax on fuels by 200%, resulting in a 21% increase in gasoline and diesel prices. The move aims to raise budget revenues after significant spending on earthquake rebuilding and the recent presidential elections. Turkey's public finances have deteriorated due to higher energy import prices and the cost of rebuilding areas affected by the earthquake. The country has been grappling with financial challenges, including double-digit inflation rates. The fuel tax increase, along with the value-added tax, will further contribute to inflation.