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(Bloomberg) — Turkey is planning modest tax increases on key goods and services, including motor fuel, in 2026, the latest step in the government’s efforts to help the central bank rein in inflation.
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Officials expect to raise levies on fuels and regulated prices at a level in line with the monetary authority’s inflation target for next year, according to people familiar with the matter, who asked not to be identified because talks on the changes are private.
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Turkey’s Treasury and Finance Ministry didn’t immediately respond to a request for comment.
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The semiannual tax measures, typically announced within the first week of the year, will show that levies on gasoline and diesel rising at a more moderate pace than indicated by laws and regulations, the people said. The move underscores the government’s commitment to help the central bank meet its end-2026 inflation target of 16% from more than 31% last month.
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Fuel costs are closely watched by markets because of their broad impact on consumer inflation.
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Special consumption taxes on gasoline and diesel are normally raised twice a year, with the rate of increase matching the cumulative producer-price inflation measured during the previous six-month period.
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The increase at the beginning of 2025 was also slightly lower than what was suggested by that formula, as authorities sought to contain price pressures.
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The new year’s measures will also target so-called administered prices, which include all goods and services that are directly set or influenced by the government and regulators. Tobacco, alcoholic beverages and energy all fall under that category.
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Treasury and Finance Minister Mehmet Simsek last month said increases to some taxes and fees would be based on targeted inflation, instead of the revaluation rate of 25.5% — a measure that’s in line with producer-price inflation.
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Consumer price gains are set to end the year around 30%, six percentage points above the central bank’s goal. Analysts expect the measure to slow to just over 25% in 12 months, according projections compiled by Bloomberg.
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