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Turkey to Tax Alcohol in-Line with EU Regulations

Source: Reuters
14/04/2009

Istanbul, April 14 - Aspiring European Union member Turkey will tax alcohol in-line with the bloc's regulations, the government announced on Tuesday in its official gazette.

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Turkey has been resisting new tax regulations in favour of lower taxes on its favourite drink, raki, which Ankara would like to protect as a national spirit.

Turkey's protracted EU membership negotiations have been marked by what critics have called a lack of political will from the government and flagging enthusiasm at home for new reforms.

According to the new law, distilled alcohol will be taxed according to a fixed rate, while wine and malt beers will be taxed according to the percentage of alcohol they contain.

The new regulations would mean the tax on a litre of raki would rise to 36 lira ($22.87) from 35.84 lira, the official gazette said.

Taxes on gin and vodka were lowered to 40 lira per litre from a previous set tax of 41.4 lira. EU Enlargement Commissioner Olli Rehn said 2009 would be a litmus test for the predominantly Muslim country that started negotiations in 2005.



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