Skip to main content

Turkey’s tax hikes squeeze consumers amid growing deficit

The Central Bank’s high-profile governor Hafize Gaye Erkan makes her first appearance before the press and economists as Turkish consumers feel the burden of price and tax hikes that continued throughout July.

Turkey market
People shop at a local street market on May 3, 2023 in Istanbul, Turkey. — Burak Kara/Getty Images

CESME, Turkey —  A blue sticker posted in a dingy supermarket in the Aegean coastal town of Cesme sports a photo of President Recep Tayyip Erdogan with a smug smile. “Is this product too expensive for you? It is because of Erdogan,” it says in bold black letters. 

The market owner says an elderly customer put it there earlier this month after the Turkish government increased the value-added tax (VAT) on cleaning and hygiene products by two points. “I voted for Erdogan in the last elections, but when she asked to stick it here on the detergent shelf, I did not object,” he said. “These are hard times — you see it here, in the way people haggle over prices, buy less than what they used to, or retired grandparents look distressed when their grandchildren ask for a second ice cream.” 

Then he becomes worried and asks that we do not use his name. “Perhaps I better remove it,” he said doubtfully. “Would it get me into trouble?” 

The sticker with text reading: "Is this product too expensive for you? It is because of Erdogan."

Subscribe for unlimited access

All news, events, memos, reports, and analysis, and access all 10 of our newsletters. Learn more

$14 monthly or $100 annually ($8.33/month)
OR

Continue reading this article for free

Access 1 free article per month when you sign up. Learn more.

By signing up, you agree to Al-Monitor’s Terms and Conditions and Privacy Policy. Already have an account? Log in

Related Topics