Turkiye raises fuel taxes by almost 200% on high earthquake costs

Türkiye boosted its fuel taxes by almost 200 per cent on Sunday, a move that will magnify inflationary pressures and further strain household budgets. 
 

The new special consumption taxes on different types of fuel — including gasoline and diesel — were published in the Official Gazette.
 

The increase will help meet financing needs stemming from the deadly February earthquakes and allow the Treasury Ministry to maintain strong cash reserves. 
 

The earthquakes caused more than $100 billion in damages, the government estimates. But the decision’s also expected to put inflation on a higher trajectory when combined with a weakened lira.