Turkey imposes US$15/t tax on coal imports for power

Turkey has imposed a US$15/t duty on thermal coal imports for use in its power sector. The tax is to be paid by power producers and is levied on a GAR-basis for imported coal. EU-suppliers are exempt from the tax but Turkey's key suppliers are not – Colombia, Russia, South Africa and the US. The law is an attempt to curb imports and deliver a stronger contribution from Turkey's domestic market, however, given weak alternatives (poor domestic supply, more costly gas) we do not see an immediate impact.