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With the President’s decision, the SCT rate on imported luxury cars was increased to reduce car imports, which negatively affect the current account deficit, and to support the domestic manufacturer.
With the President’s decision published in the Official Gazette, the Ministry of Finance and Finance issued a regulation based on engine cylinder volume ranges and special consumer tax bases to reduce car imports, which have a high level of negative impact in the current account deficit.
1,600 cc six cars that are subject to an excise duty of 60 percent in Turkey, almost all (99.3 percent), while the 1,600 cc and mostly cars are imported. Although there was an increase in the SCT tariffs applied to this group of automobiles, the objective was to support the national manufacturer and the national industry by increasing the duty-free sale price from 70 thousand lire to 85 thousand lire in the area where national production is concentrated, which is less than 1600 cc.
By maintaining the existing correlation for hybrid cars, SCT rates for these vehicles were increased in a coordinated manner.
Thus, with the change in fiscal policy, the demand for high-priced imported cars shifted towards cars subject to a low SCT rate, and in this context, lower-priced cars were imported, domestic car sales increased, the amount decreased. of imports and the composition of these imports changed and the current account deficit was reduced by paying lower import rates. It aims to make a positive contribution to the decline.
For example, the SCT rate was increased from 60 percent to 80 percent for cars whose engine cylinder volume did not exceed 1600 cc and the base SCT exceeded 130 thousand lira.
The tax rate has been raised from 100 percent to 130 percent for electric cars whose engine cylinder volume exceeds 2000 cc and whose tax base does not exceed 170 thousand lire, and for others from 110 to 150 percent.
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