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With the president’s decision to reduce automobile imports, which negatively affect the current account deficit, to support the national manufacturer SCT rate on imported luxury cars The VAT rate on education and training services was reduced from 8 percent to 1 percent, and this difference was intended to reflect positively on parents.
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.
In Turkey Automobiles under 1600cc subject to a 60 percent SCT rateAlmost all (99.3 percent) and cars over 1600 cc are imported. Although there was an increase in the SCT tariffs applied to this group of automobiles, the tax-free sale price increased from 70 thousand liras to 85 thousand liras in the area where national production is concentrated, which is below the 1600 cc. Its objective is to support national producers and the national industry..
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.
VAT rate reduction in education and training
On the other hand, with another regulation in the Official Gazette, the VAT rate on education and training services, which is currently subject to 8 percent VAT, has been reduced to 1 percent.
Thus, as a continuation of the support provided to the private sector in general during the epidemic period, the aim was to reduce the VAT rates of taxpayers who were active in this field before the start of the educational period, including universities, and the difference between them. aimed to positively reflect on parents.
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