ISTANBUL: Turkey has raised taxes on cars, fuel and alcohol, the government-run Official Gazette reported on Saturday, as part of efforts to reduce a budget deficit that is likely to exceed a year-end government target.
Economic growth slowed in Turkey to 2.9 percent in the second quarter, reducing tax revenue. Lacklustre privatisation receipts and increased infrastructure spending have also hit the government's budgetary balances.
Finance Minister Mehmet Simsek told Reuters this month that the government was very likely to miss its deficit target of 1.5 percent of output this year and that the government was looking at corrective measures including spending controls.
The Official Gazette said the government has lifted the special consumption tax on most cars to 40 percent from 37 percent. The gasoline tax was raised by 15-16 percent and diesel fuel tax was increased by 23 percent, it said.
The tax on wine and the popular spirit raki was raised by 17 percent, the government's official publication said, while other types of alcohol also saw varying tax hikes.
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