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Last minute: Excise tax base limit increased in automobiles

Excise tax base limit increased for automobiles

With the decision published in the Official Gazette with the signature of President Erdoğan; in cars SCT The tax limit has been increased. The basis for the 45 percent SCT rate in automobiles is from 120 thousand liras to 184 thousand liras, the 50 percent SCT rate is taken as a basis from 150 thousand liras to 220 thousand liras, the 60 percent SCT rate is taken as a basis from 175 thousand liras to 250 thousand liras, The basis for the 70 SCT rate was increased from 200 thousand liras to 280 thousand liras.

According to the news of AA; With the President’s Decision published in the Official Gazette, changes were made in the special consumption tax bases based on the rates for passenger cars.

According to the decision, the baseline for the 45% SCT rate ranges from 120 thousand liras to 184 thousand liras; The tax base, which is taken as a basis for the 70% SCT rate, was increased from 200 thousand liras to 280 thousand liras.

For hybrid motor vehicles with electric motor power exceeding 50 kilowatts, engine cylinder volume not exceeding 1600 cc and not exceeding 1800 cc, the SCT baseline, which is taken as a basis for the 45 percent SCT rate, is from 130 thousand liras to 228 thousand liras and 50 percent SCT rate. The tax base threshold, which is taken as a basis, has been increased from 210 thousand liras to 350 thousand liras.

OBJECTIVE: REDUCING THE CURRENT DEFICIT

It is envisaged that the regulation will be reflected in some automobile prices as a discount, as a result of the increase in the excise tax base thresholds, which are the basis for the SCT rate, especially for the categories where domestic cars are concentrated.

With the President’s Decision, it is aimed to decrease the prices in this segment with the increase in the tax base in the categories where domestic automobiles are concentrated, thus reducing the current account deficit by shifting the preferences to these domestic automobiles.

In addition, the amendment is intended to make a positive contribution to inflation as a result of the decrease in prices due to the increase in the tax base in categories where domestic automobiles are concentrated.

EXPECTED DISCOUNT RATES

* While there is no change in the price of cars with a sales price of more than 594 thousand 722 liras including taxes for cars under 1600 cc, the sales price including taxes has been increased from 120 thousand liras to 184 thousand liras, which is based on the 45 percent SCT rate, from 212 thousand 401-369 thousand 104 liras. The price of cars between 7 thousand and 54 thousand liras decreased,

* Likewise, as a result of increasing the SCT base threshold, which is taken as a basis for the 50 percent SCT rate, from 150 thousand liras to 220 thousand liras, the price of cars with a sales price of 369 thousand 106-467 thousand 280 liras including taxes decreased between 43 thousand and 78 thousand liras,

* With the increase of the excise tax threshold, which is taken as a basis for the 60% SCT rate, from 175 thousand to 250 thousand liras, the average price of cars with a sales price of 467 thousand 282 – 531 thousand liras, including taxes, decreased between 52 thousand and 59 thousand liras,

* As a result of increasing the SCT base threshold, which is taken as a basis for the 70% SCT rate, from 200 thousand liras to 280 thousand liras, the price of cars with a sales price of 530 thousand 002 – 594 thousand 720 liras, including taxes, is expected to decrease between 29 thousand 500 and 33 thousand liras.

NO CHANGE IN THE BASES OF IMPORTED CARS

On the other hand, no changes were made in the bases of conventional cars with an engine cylinder volume of more than 1600 cc and cars that were almost entirely imported.

Thus, with the change in fiscal policy; It is aimed that the demand for high-priced imported automobiles will be directed towards automobiles subject to low SCT rates, in this context, automobiles with less high prices will be imported, domestic automobile sales will increase, the amount of imports will decrease due to this, and their composition will change and contribute to the reduction of the current account deficit.

*The photo of the news was served by İHA.




By Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org