More controversy in ’Burgaz warfare’
Güncelleme Tarihi:
by Aram Ekin Duran - Referans
Oluşturulma Tarihi: Mart 27, 2009 00:00
ISTANBUL - Turkish rakı producers are uneasy due to claims that one of the sector players is being able to pursue an aggressive pricing strategy only by evading tax. Burgaz Rakı grabbed nearly 30 percent of the domestic rakı market by using inappropriate tax stamps on its products, they claim. The Savings Deposit and Insurance Fund, which has a seat on the Burgaz board, is staying silent.
The disruption created by alcoholic beverages company Burgaz Rakı continues in Turkey’s rakı market, which has an annual sales volume of 1.6 billion Turkish Liras.
Founded in 2004 with an initial investment of $40 million, Burgaz Rakı grabbed nearly 30 percent of the market with its discount pricing policy. But last week, the company was accused of using inappropriate tax stamps on its products. Tax inspections conducted in the Manisa and Lüleburgaz districts showed the 70 cc Burgaz Rakı bottles had tax stamps for 20 cc bottles on them.
All eyes turn to the SavingsDeposit and Insurance Fund
The tax evasion scandal turned all eyes to the Savings Deposit and Insurance Fund, or TMSF, which has a seat on the Burgaz Rakı board due to debt owed from Sümerbank. Sector representatives, who say that despite the scandal Burgaz Rakı has again launched a bitter price war in tourist destinations, asked the TMSF to intervene in the process and set up its inspections.
In 2007, Burgaz Rakı held 7 percent of the rakı market in Turkey. According to February figures from the Nielsen research firm, the company now commands 28.1 percent of the market. This rapid growth is attributed to the aggressive pricing policy pursued by the company, which sells a 70 cc bottle of rakı for 19.90 liras. Other producers said such a discount is impossible with the current taxes, as the private consumption tax and the value added tax total 15 liras.
As the debate continues, an alleged agreement between Burgaz and hotels in the south has stirred up the market once again. Burgaz has been accused of wholesaling a 70 cc bottle of rakı for 12.45 liras plus VAT to these hotels.
As other market players request a more serious investigation into the allegations, the TMSF has turned a deaf ear on calls for Burgaz Rakı to be seized by the government. A TMSF official speaking on condition of anonymity said the fund has requested that various public bodies make the necessary investigations. "Up until today, we have received an answer only from the Tobacco and Alcohol Market Regulation Agency," the official said. "And they said the agency has seen no evidence supporting these claims."
Rakı is an anise-flavored, strong alcoholic drink and is regarded as the "national alcoholic beverage"in Turkey. It is similar to other beverages available in many other Mediterranean and Middle Eastern countries.
Founded in 2004 with an initial investment of $40 million, Burgaz Rakı grabbed nearly 30 percent of the market with its discount pricing policy. But last week, the company was accused of using inappropriate tax stamps on its products. Tax inspections conducted in the Manisa and Lüleburgaz districts showed the 70 cc Burgaz Rakı bottles had tax stamps for 20 cc bottles on them.
All eyes turn to the SavingsDeposit and Insurance Fund
The tax evasion scandal turned all eyes to the Savings Deposit and Insurance Fund, or TMSF, which has a seat on the Burgaz Rakı board due to debt owed from Sümerbank. Sector representatives, who say that despite the scandal Burgaz Rakı has again launched a bitter price war in tourist destinations, asked the TMSF to intervene in the process and set up its inspections.
In 2007, Burgaz Rakı held 7 percent of the rakı market in Turkey. According to February figures from the Nielsen research firm, the company now commands 28.1 percent of the market. This rapid growth is attributed to the aggressive pricing policy pursued by the company, which sells a 70 cc bottle of rakı for 19.90 liras. Other producers said such a discount is impossible with the current taxes, as the private consumption tax and the value added tax total 15 liras.
As the debate continues, an alleged agreement between Burgaz and hotels in the south has stirred up the market once again. Burgaz has been accused of wholesaling a 70 cc bottle of rakı for 12.45 liras plus VAT to these hotels.
As other market players request a more serious investigation into the allegations, the TMSF has turned a deaf ear on calls for Burgaz Rakı to be seized by the government. A TMSF official speaking on condition of anonymity said the fund has requested that various public bodies make the necessary investigations. "Up until today, we have received an answer only from the Tobacco and Alcohol Market Regulation Agency," the official said. "And they said the agency has seen no evidence supporting these claims."
Rakı is an anise-flavored, strong alcoholic drink and is regarded as the "national alcoholic beverage"in Turkey. It is similar to other beverages available in many other Mediterranean and Middle Eastern countries.