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UPDATE 1-Turkey to tax alcohol in-line with EU regulations

Published 04/14/2009, 04:28 AM
Updated 04/14/2009, 04:48 AM

(Adds details, background)

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

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.

(Editing by Elaine Hardcastle)

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