Draft law hints at surprising tax hike for electric vehicles in Turkey

Emre Özpeynirci - ISTANBUL

A draft bill recently submitted to parliament has unexpectedly proposed a motor vehicle tax (MVT) rise on electric vehicles in Turkey.

According to the bill, the proposed MVT rate for electric cars will be set at 25 percent of the MVT rate currently levied on diesel and gasoline-powered vehicles.

Accordingly, if 3,000 Turkish Liras is paid as the MTV for a gasoline-powered vehicle, the amount of MTV to be paid for an electric vehicle sold at the same price as the gasoline-powered vehicle will be 750 liras.

Electric cars have up to now been exempt from the MVT as they vehicles do not have an internal combustion engine.

Starting from Feb. 1, MVT is determined according to the vehicle’s price excluding tax, besides the vehicle’s cylinder volume and age. This new tax regime has paved the way for levying taxes on electric vehicles.

According to the bill, the purpose of the legislation is to tax electric vehicles, off-road vehicles, panel vans, and motorcycles at a rate corresponding to 25 percent of the MTV currently levied on motor vehicles.