Turkey: Special Consumption Tax thresholds revise for some cars

According to the Presidential decree published in the Official Gazette, the special consumption tax base limits were increased for cars with an engine displacement of up to 1,600 cubic centimeters and some hybrid cars. According to this;

The upper limit of 45% SCT applied to conventional cars with an engine displacement of less than 1,600 cm3 was increased from 120 thousand liras to 184 thousand liras.

Where 50% SCT is applied, the limit has been increased from 120K-150K liras to 184K-220K liras.

In brackets where 60% SCT is applied, a new limit has been determined as 220K-250K lira instead of 150K-175K lira.

In brackets where 70% SCT is applied, a new limit has been determined as 250K-280K lira instead of 175K-200K lira.

For hybrid cars with electric motors above 50kW but with an engine capacity of less than 1,800 cm3:

The tax base limit of 45% SCT was increased from 130 thousand liras to 228 thousand liras.

 Limit increased from 130K-210K lira to 228K-350K lira in places where 50% SCT is applied.

Taxation of Passenger Vehicles, base price and SCT adjustments… Source: Official Gazette, Tera Yatirim

Within the framework of Minister of Treasury and Finance Mr. Nureddin Nebati's previous statements, the changes in the SCT base were expected to come into effect on December 1, and with the decision published in the Official Gazette, it was put into effect one week earlier than expected. If we explain the decisions taken in terms of their reflection on the prices; Before that, cars with a price above 420 thousand TL were in the 80% SCT segment. With the update, this limit has been increased to 595 thousand TL, so vehicles more expensive than this price will be subject to 80% SCT. For cheaper vehicles, we will see SCT segments decreasing by 70, 60 and 50 percent, respectively. The changes will mean a price reduction of 3% to 15% for vehicles based on the respective price ranges.

On the other hand, there are supply problems and problems caused by the ongoing demand in the automobile sector due to the chip, logistics, supply, energy crisis and the consequent reduction in production. This has led to a serious increase in prices in both new and second-hand vehicle markets, and we see more expensive second-hand vehicles than new vehicles. Lastly, in July, a 6-month and 6000 km limitation was imposed on the sale of second-hand vehicles. If demand increases, supply problems continue and the Euro exchange rate rises, prices may continue to increase in the reduction of SCT. In the previous SCT base update, which was last made in January, increased prices created this need. Therefore, if prices continue to rise and erase the impact of the base update, a further update may be needed in the future.

Kaynak: Tera Yatırım- Enver Erkan
Hibya Haber Ajansı