The excise tax rate on cigarettes has been reduced. To offset the decrease in tax revenues resulting from this reduction, the fixed tax amount has been increased. This adjustment was made to limit the inflationary effect. Changes have been made to both the excise tax rate and the fixed tax amount on cigarettes, along with a modification in the composition of the excise tax. The Presidential Decree on this matter has been published in the Official Gazette and has come into effect. EXCISE TAX AND FIXED TAX RATE ALTERED ON CIGARETTES The decree has redefined the excise tax rate and fixed tax amount on cigarettes. According to information obtained from the Ministry of Treasury and Finance, changes were made to the composition of the excise tax in a way that would not lead to any changes in tax revenues. In this context, while a reduction was made in the excise tax rate on cigarettes, an increase in the fixed tax amount was implemented to compensate for the decrease in tax revenues resulting from this reduction. AIM IS TO LIMIT THE INFLATIONARY EFFECT The adjustment has reduced the multiplier effect of cigarettes from 4.4 to 3.8, with the aim of providing support for the fight against inflation through fiscal policy. This means that for a 1 lira increase in costs, the required increase in cigarette prices is now 3.8 lira instead of 4.4 lira. It was noted that this fiscal policy measure, taken in line with budget targets, aims to limit the inflationary effect.