SCT increase to affect Turkish white goods sector negatively
Turkish
white goods sales have shown increase in the last months of 2004 as a result of the government's decision to increase special
consumption tax (SCT) on
white goods next year.
It is reported that this is the most buoyant period for the dealers. Furthermore,
white goods sector has recorded a fairly active year due to favourable campaigns and the producers, who did not pass cost increases on the consumers.
However,
white goods sector is expected to slowdown in 2005 due to the increases in SCT and raw material prices. It is stated that raw material prices showed a rise of around 50% in 2004. Consequently, in 2005, the increases to be recorded in SCT and raw material prices will be passed on the consumers. In line with these expectations,
white goods sector will grow by 20% next year.
Based on the
White Goods Manufacturers Association data, total
white goods sales rose by 71% in the first ten months of the year. Domestic sales reached 4.2 million units in Jan-Oct 2004 period from 2.5 million units recorded in Jan-Oct 2003 period.