site.btaTurkish Ministry of Trade Plans to Ban Inclusion of Tips and Service Charges in Customer Bills

Turkish state television TRT Haber has reported on Tuesday that the Turkish Ministry of Trade has prepared a new draft legislation on service charges added to customers' bills in restaurants, cafes, bars, pastry shops and other establishments. The draft prohibits the addition of service charges, tips, cover charges, etc. to customer bills, which currently vary between 10 and 15% of the value of the consumption.

This issue has long been debated in Turkish society and media. Recently, customers have complained that many establishments, especially in Istanbul, charge fees ranging from 20 to 50 liras per person for tables and services. To stop this practice, which has caused outrage, the new legislation will ban the addition of service or cover charges to customer bills, according to the explanatory memorandum.

Previously, the ministry required that the prices of all services, food and beverages be clearly displayed at the entrance to, and on the tables of, the establishment in question. Additional charges, such as service charges and cover charges, may be levied provided they are clearly indicated on the price list.

The draft legislation stipulates that only the price of the goods purchased should be entered into the customer's bill, without adding a service charge. Service charges or tips will be entirely voluntary and at the customer's discretion. Substantial fines are also envisaged for non-compliance with the new legislation.