Private Consumption Tax Rates of Electric Cars Increased

Special consumption tax rates for electric cars increased
Special consumption tax rates for electric cars increased

We have learned that with the Decision Regarding the Implementation of the Attached Decision on Special Consumption Tax Rates to be Applied to Certain Goods (Decision Number: 02) published in the Official Gazette dated 2021 February 31383 and numbered 3471, there are increases in the Special Consumption Tax rates applied to electric cars.

Special Consumption Tax Rates applied to electric cars with the decision;

For those whose motor power does not exceed 85 kW, from 3% to 10%,

For those whose motor power exceeds 85 kW but does not exceed 120 kW, from 7% to 25%,

Motor Power has been increased from 120% to 15% for those exceeding 60 kW.

While the automotive industry is going through a very important change and transformation in the world, it is seen that there are many innovations in automotive technologies.

Incentives and sustainable programs are implemented to support the spread of developing environmental technologies in the world and medium and long-term plans are announced within this scope.

In this respect, Turkey to reconsider the structure of taxation in the automotive sector shows that once again the need arise.

In our country, 2020 electric cars were sold in 844, and the share of electric cars in the total automobile domestic market is only 0,1%.

The automotive industry is one of the major industrial countries and the developed and developing our industry takes an important role in Turkey with our industry. In addition, it has announced its aim to create a world brand by producing the domestic automobile that we will produce with our own brand electrically.

At this point, it was very valuable in terms of supporting the electric vehicle market in the domestic market of our country, the development of this new segment, encouraging the formation of consumer habits around this and the development of the automotive ecosystem in this direction starting from charging stations. Therefore, this increase is thought to have negative consequences for the domestic brand strategy.

In addition, as in previous tax increases, we see that consumers who have decided to buy a vehicle but have not yet paid SCT are victims. Such decisions; We would like to repeat our proposal to establish an automotive council, which includes representatives of our sector associations and related public institutions, and that will work in order for the state to better focus on achieving the targets set for itself in this sector.

We are of the opinion that the increases in the SCT rates applied to electric cars, which were published and entered into force as of February 2, 2021, will have a negative effect on the rate of proliferation of environmentally friendly cars in our country. In this case, the stakeholders in the automotive ecosystem with the potential to adversely affect investments to Turkey, it will affect employment in the negative direction.

The domestic market that has been created in recent years, the production and export achieved by the main and subsidiary industries, and beyond these, the employment created by the main players and affiliated sectors of the whole sector is very valuable for our country. Automotive is in an important position as it drags many sectors after it. It is also very important for the economy of our country to develop policies that will bring the automotive domestic market, which is one of the leading sectors of our country, to 1 million levels again, to make the atmosphere of trust and stability sustainable. Preserving and developing the Automotive Ecosystem is very valuable for the continuity and support of the competitive power of our industry in the global automotive arena.

As the automotive industry, our wish is to reach a market size of 1 million pieces again as soon as possible and to further increase our contribution to the national economy. Our sector will continue to do its part for the benefit of our country in this process.

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