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Türkiye is preparing to implement modest tax increases on motor fuel and other key goods and services in 2026 as part of the government's effort to help the central bank bring down inflation, according to people familiar with the matter talking to Bloomberg.
Officials plan to raise levies on fuels and regulated prices at levels aligned with the central bank's inflation target for next year, said sources who requested anonymity because discussions on the changes remain private.
The semiannual tax adjustments, typically announced during the first week of January, will show increases on gasoline and diesel rising at a more moderate pace than current laws and regulations would normally dictate, according to the sources. The approach signals the government's commitment to helping the central bank reach its year-end 2026 inflation target of 16%, down from more than 31% last month.
Fuel costs receive close attention from financial markets due to their wide-ranging impact on consumer inflation. Special consumption taxes on gasoline and diesel normally increase twice annually, with the rate of increase matching cumulative producer-price inflation measured during the preceding six months.
The increase implemented at the beginning of 2025 also came in slightly lower than the formula would have suggested, as authorities worked to contain price pressures.
The government's new year measures will also affect administered prices, which encompass goods and services directly set or influenced by government agencies and regulators. This category includes tobacco, alcoholic beverages and energy.
Treasury and Finance Minister Mehmet Simsek said last month that increases to certain taxes and fees would be based on targeted inflation rather than the revaluation rate of 25.5%, a measure that aligns with producer-price inflation.
Consumer price gains are expected to end the year around 30%, six percentage points above the central bank's goal. Analysts project the measure will slow to just over 25% within 12 months, according to projections compiled by Bloomberg.
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