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The SCT increases hit the auto sector at midnight … Here are the new SCT rates …
With the president’s decree, high SCT hike rates were made for upper and middle-class cars, while lower rates were increased for cars covering lower-class models.
In this context, how will it be reflected in car prices?
While there is a discount of up to 6.25 percent on lower-class models, this rate is up to 19% in the middle class and up to 23 percent in the upper class.
For a long time, the automotive sector was shocked by the increase in the SCT at midnight, while waiting for a reduction in the tax base brackets due to the increase in exchange rates. With the president’s decision published at midnight, SCT’s rates have been increased to be effective as of today. Consequently, in the 45 and 50 percent sub-segments, the base amount was increased by only TL 15 thousand, while the 60 percent portion was raised to 80 percent. Unexpectedly high increases were made in the SCT legs of the middle and upper groups.
RATES AFTER SCT EXT.
• 45 percent SCT for vehicles with a cylinder volume of up to 1600 cm3 with a base base of up to 85,000 TL,
• 50 percent SCT for vehicles up to 1600 cm3 cylinder volume, with a base quantity between TL 85,000 and TL 130,000,
• 80 percent SCT will apply to vehicles up to a cylinder volume of 1600 cm3 and with a base base of more than 130,000 TL.
• 130% SCT for vehicles with a cylinder volume between 1600-2000 cm3 and a base base of up to 170,000 TL,
• 150% SCT for vehicles with a cylinder volume between 1600-2000 cm3 and a base base of more than 170,000 TL,
• A 220% SCT will be charged for vehicles with a cylinder volume greater than 2000 cm3 and without a tax base limit.
So what do these increases mean?
1.6 liter engine below Cars with a tax base of 70 thousand lira were previously subject to an SCT rate of 45 percent. Now this base amount has increased to 85 thousand lire. Although the tax base did not exceed 70 thousand lire, it used to be 50 percent when it did exceed. In this case, it is valid for the base models of the national production brands; It used to be rated with a 50 percent SCT rate in this segment. Base models from certain brands will now be subject to 45 percent SCT support. In this sense, a discount will be made on some domestic models.
The big real change is the increase in the SCT rate of cars with a base of 130 thousand lira from 60 percent to 85 percent. Although the tax base was 120 thousand TL, it became 130 thousand TL. But a small change in the base will not change anything. The SCT increase from 60 percent to 85 percent is actually a big increase. In this sense, the models of the middle segment are also affected, especially the models of the luxury segment.
For higher models, the base level was determined at 130 thousand TL for models below 1.6 and 135 thousand TL for models above 1.6 liters.
Above 2.0 liters, we broke a world record in tax rate. There was a 220 percent increase in the SCT regardless of the tax base above 2.0 liters. When we combine it with VAT, it becomes 277 percent.
With the new arrangement, high-priced cars will be higher. Car prices above 200 thousand lire will increase by about 50 thousand lire.
The positive side of this arrangement is the following; This arrangement will be reflected as a discount for some models of brands that make national production. Therefore, it seeks to reduce the sales of imported cars and therefore the current account deficit.
On the other hand, it was stated that the demand for second-hand cars, which has already increased excessively according to the dynamics of the market, will increase in the coming days, and their prices will increase even more in the coming days, and will negatively affect manufacturers and new car dealerships for price increases on zero cars.
Ali Kibar, chairman of the board of Kibar Holding, said that preparations for new price studies began with the arrangement that came over the weekend and that he thought this arrangement would pull back demand for imported cars somewhat.
Focus Automotive sales manager Emrah Ünlü said: “The timing of this decision made by the state should be evaluated separately and the reason separately. The state should start considering month-end closings when making such decisions. Because here again, the consumer is the main victim. On the other hand, with the effect of zero sales so far, the government seems to have collected a large part of the SCT that it plans to collect by 2020. I think this has also affected the decision. However , this will not have the expected effect because almost all companies greatly increased their vehicle orders in the last quarter due to market movement. It will be a major problem for interested companies and it is probably too late for cancellation. Also, as the number of distributors with zero sales will decrease significantly, distributors will be in a difficult situation and what will happen will be employees. Second-hand gallery sales by inflating prices will continue to rise for vehicles in their stock. In other words, while secondhand gallery owners increased their profits, what happened again happened to the consumer. Ultimately, the only positive effect of this decision may be the decrease in the current account deficit as well as dozens of negative effects such as the victimization of customers, the decrease in vehicle sales, the decrease in the profits of the dealers and the possibility of unemployment of employees in this direction, “he said.
Akif Tuzcu, owner of Tuzcu Automotive, which has a second-hand sales office, said: “After the restrictions on exiting the street, the demand began to gradually decrease in mid-August, following the increase in demand with the arrival of the summer months and the problem of car supply. “Although hand prices do not increase much, we think that at these prices, which are now considered very high, users will turn to second-hand cars again. While second-hand vehicles will once again be attractive, SCT’s new rates will especially affect sales of vehicles in the luxury segment “0”, he said.
Burak Karagoz / Bloomberg HT
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