Turkey has hiked taxes on tobacco and alcohol for the new year, while its energy market regulator has also increased electricity prices as of Jan. 1 to fund investment and production.

Taxes on alcoholic beverages including beer, gin, vodka and raki have been raised by between 12 and 15 per cent, according to an announcement in the Official Gazette late on Friday. The minimum fixed tax rate on cigarettes rose by five percent.

The moves come after Turkey increased the minimum wage by 30 per cent as of Jan. 1, a step which the country's labour minister said on Wednesday could add 0.5-0.8 percentage points to inflation.

The EPDK energy regulator meanwhile increased electricity prices by 6.8 per cent for the first quarter to help fund investment in distribution, transmission and to help meet the cost of energy production, a senior energy official said. – Reuters