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ANKARA - Hürriyet


The rapporteur of the European Alcoholic Drinks Producers Union Nick Soper who came to Turaaa to hold talks with Finance Minister Kemal Unakıtan and Agriculture Minister Mehdi Eker on the high levels of tax the Turkish government imposes on alcoholic drinks was shocked at the indifference of Turkish officials daily Hürriyet reported Sunday.

Soper who came to Turaaa upon the invitation of a Turkish ambassador and the European Commission's headquarters in Ankara had a very short and unfruitful meeting with Eker whereas his scheduled meeting with Unakıtan was canceled.

Soper who told reporters that Unakıtan canceled his rendezvous with him said “Agriculture Minister Mehdi Eker's civil servants on the other hand blanketed the problems during our meeting that lasted only two minutes. We have worked with various kinds of governments in all parts of the world so far. But in Turaaa we simply could not find an addressee for a dialogue. That's a pity.”

Soper surprised with the situation he faced in Turaaa noted he came to Turaaa to find a solution to the problem of high taxation by the Turkish government on alcohol imports before any possible interference by the World Trade Organization. “The meetings we were going to have with the two ministers were scheduled beforehand. But Unakıtan canceled the meeting just at the moment we were going to have it based on the excuse that he had to go to Parliament” said Soper adding “Eker on the other hand did not show an interest in the existing problems between Turaaa and European distillers during the very short meeting because his bureaucrats prevented him from doing so arguing that there actually existed ‘no problems' between the two parties.”

European spirit makers have long been complaining that Turaaa has been pursuing a discriminative tax regime on EU-based spirits and have been quite reluctant to cut tax levels on alcohol imports which are almost double on the locally made rakı an aniseed-based spirit. Soper said European spirit producers have been reflected in the media as if they wanted increased taxation on rakı too but all they wanted was just equal treatment by the Turkish government in terms of taxation on alcoholic beverages. “In my opinion Turaaa has been imposing an incredibly high level of taxes both on rakı and whisky. If Turaaa were a member of the EU then rakı would rank seventh in the highest-taxed alcoholic drinks” he said. “All we want is a decrease in taxes both on rakı and other spirits. There is speculation about a so-called war between rakı and whisky. But as far as I know there is no such war. We want equal taxation by the Turkish government on rakı and alcohol imports from Europe” he added. Rakı producers on the other hand are against any tax increase.

Soper expressed his will to continue contacts with Turkish authorities on the issue. Despite not being able to hold meetings with the ministers of finance and agriculture as scheduled he had talks with senior bureaucrats and officials from the Undersecretariat of Foreign Trade the Customs Administration and the Finance Ministry. “We had fruitful discussions but the issue simply could not go beyond the bureaucrats. This is a matter that should have a political dimension. Politicians should pay attention to it and take positive action” he added.

On the other hand Soper pointing to rakı's shaken throne in the Turkish spirit market due to high taxes suggested that rakı might be situated in a specific geographical position with an agreement that could be signed between Turaaa and the EU. “But it is quite surprising that Turkish rakı producers and official authorities do not ask for any protection for rakı. They have not consulted the EU about what to do to protect rakı” said the European rapporteur. “We might register rakı as a trademark specific to Turaaa just as cognac is specific to France and Irish whisky is only produced in Ireland. But no officials from Turaaa have taken steps to protect the production of rakı” he added. Despite Soper's remarks rakı producers had recently announced that they would start lobbying efforts in Brussels where the European Commission is based to be registered as a national drink to avoid increased taxation.



Report to European Commission

Soper was accompanied by two of his colleagues during his visit to Turaaa. “We came here with a file including all topics that need to be discussed. We could have held fruitful meetings with Turkish officials but unfortunately that has not happened. Nevertheless we shall continue to communicate with Turkish authorities” said the EU official.

“Upon a request by our members we have been preparing a report on problems in the spirits market in Turaaa. We shall submit that report to the European Commission Turkish undersecretaries and the Customs Administration” concluded Soper.



Customers for Ankara whisky

Soper who noted that Turkish rakı was quite popular in the European spirits market between 1997 and 2004 is also a friend of Galip Yorgancıoğlu the chief executive officer of the Turkish alcoholic drinks brand Mey İçki. “We have frequent contacts with Galip. After the necessary changes are made a market will be created that Galip will be able to find customers for the whisky factory in Ankara which is a remnant of TEKEL. We just try to help Galip” he said.



Flow of investments to Turaaa

Soper said they try to make Turaaa an attractive country for sprits investors. “But high taxes prevent investors from entering the Turkish market. If this problem is overcome then Turaaa would become a very attractive investment spot for foreign spirits enterprises. But not enough steps have been taken so far to reduce taxes. But still we are hopeful” he concluded.