New tax thresholds for cars unveiled
ANKARA
New price thresholds for a special consumption tax (SCT) on vehicles have been unveiled, a move that is expected to lead lower prices for certain models.
According to the presidential decree published in the Official Gazette, the lower SCT limit was raised from 120,000 Turkish Liras ($6,400) to 184,000 liras for vehicles with engines smaller than 1,600cc, while the upper limit was hiked from 200,000 liras to 280,000 liras.
The SCT brackets for electric cars were also changed. Accordingly, the lower limit was increased for electric vehicles with engines smaller than 1,800cc, from 130,000 liras to 228,000 liras, while the upper limit was lifted from 170,000 liras to 350,000 liras.
After the new tax adjustments, car prices for some models and brands are expected to decline by 77,000 liras at most.
A 45 percent tax rate will be levied on vehicles with engines smaller than 1600cc whose price is below 184,000 liras.
The rate will be 50 percent for vehicles within the price band of 184,001 liras and 220,000 liras, while it will be 60 percent for vehicles priced up to 250,000 liras.
The tax rate is set at 70 percent for vehicles which cost up to 280,000 liras, other cars will be subject to 80 percent tax.
Data from the Automotive Distributors’ Association (ODD) showed that some 88 percent of passenger cars sold in January-October consisted of the vehicles in the A, B and C segments, which are subject to lower tax rates.
Around 75.9 percent of the sales were in the petrol/diesel engine type and 80 percent special consumption tax bracket, said the association.
The combined sales of passenger cars and light commercial vehicles declined by 4.8 percent year-on-year to 586,000, with passenger car sales falling 6 percent to 447,000 units.
In October alone, passenger car sales soared more than 17 percent from a year ago to 47,400 units.
