Sozcu Newspaper / No Justice in Taxes for Alcohol

While taxes multiply the product prices in the spirits industry, the industry representatives have pointed out that there is no justice anymore with respect to such matter, and that the imports having increased for the last 5 years pose a great risk.

Emphasizing the unfair tax system in the spirits industry, in which the increases in price have accelerated since the beginning of summer, the producers have delivered the message "The costs have increased, and the consumption has switched to the imports and illegal spirits, and there is no discussion for injustice". Noting that there has been a 135% price increase in a raki brand since January 2020, Levent Komur, General Manager at Mey|Diageo, said that “244 TL of 359 TL of raki constitutes the tax. Our profit margin has not increased. 2 percent of total taxes are levied on the spirits.

TAX MORE THAN ITS PRICE

This should range between 1 percent and 0.75 percent. The imports have increased in the last 5 years. We work with a capacity utilization rate of 30 percent. The imports are increasing, and the illegal spirits are increasing, while the capacity utilization rate is decreasing. The number one act is required to be a fair tax system.” Noting that the tax imposed on the product should not be higher than the price of the product in the market, and that the industry cannot develop with unfair policies, Komur has stated that the taxes collected should be allocated to the farmer who produces the raw material. Emphasizing that the farmer, the Tekel dealer and the consumer are unhappy at this point, Komur has continued as follows: “Who is happy here? The counterfeiter is happy, the farmer living in the location where the spirits are imported are produced, is happy. The Special Consumption Tax should be brought to a reasonable level. The tax applied on a product cannot be higher than its price. The consumption is not decreasing; it is going unregistered.

A fair tax system is a necessity. If there is to be an increase, then it should be based on the inflation targeted, not the past inflation. The Special Consumption Tax should not be increased in the beginning of the year. If the tax does not increase for 3-5 years, then the price of the spirits will decrease.”

The price should be 450 TL

Noting that if they reflect all costs, then the price of a bottle of raki could increase up to 450 TL, Levent Komur has stated that after December 2019, there was a 179 percent increase in the gasoline prices, and 179 percent increase in the toothpaste, and 200 percent increase in the beer, and 135 percent increase in the raki.

Additional purchases of 40 million

Levent Komur, speaking at the innovation center that Mey|Diageo put into operation with an investment of 18 million TL within the production facilities in the district of Alasehir in Manisa, has noted that they work with a total of 18 thousand farmers, and that they will purchase 140 thousand tons of grapes this year. Komur has stated that they have paid twice the price for the grapes which they will purchase. Noting that they have performed an additional purchase of 40 million TL this year in order to protect the farmers in Tarsus, Komur has stated that the price of the bottle has increased by 194 percent in one year, and that the price of aniseed has increased from 22 TL to 80 TL.