Türkiye to balance tax hikes with inflation goals – FinMin

Türkiye will adjust tax increases on fuel and tobacco in 2025 without jeopardising inflation forecasts, Treasury and Finance Minister Mehmet Simsek said on Sunday.

Speaking in Sanliurfa City, Simsek stressed the government’s commitment to “maximum sensitivity on administered prices” to support the central bank’s efforts.

The Turkish minister assured that tax adjustments would align with the central bank’s goal to reduce inflation to 21 per cent by the end of 2025. Annual inflation is expected to slow to 45 per cent in December, down from 47 per cent in November, according to economists.

Recent measures, including a 30 per cent minimum wage hike, have drawn investor attention for their inflationary potential. Simsek downplayed the impact of revaluation rate adjustments on inflation, noting their minimal influence.

Türkiye’s central bank recently cut its benchmark rate to 47.5 per cent for the first time in two years, signalling cautious steps toward economic stabilisation.

Attribution: Bloomberg

Subediting: Y.Yasser