The claim that there will be a SCT reduction or an update to the tax base in automobile prices, which has emerged in the past days, fell like a bomb on the agenda of social media and news sites. So much so that the zero option appeared in the eyes of thousands of citizens who wanted to buy second-hand cars. So how is it actually? Will there be a discount or update? The first statement came from the Minister of Treasury and Finance. Here are the details…
Is there an excise duty discount? What does base update mean?
Technology prices continue to increase day by day due to many factors such as exchange rate changes, high inflation, global chip and supply crisis. The country most affected by this situation was Turkey, and the sector was automotive.
For this reason, the expectation of discounts appeared in the citizens who will buy cars. There are two ways to achieve this. First, the possible SCT reduction may directly affect the prices. Secondly, the re-activation of the tiers that have lost their validity with the base update may reduce the prices.
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Of course, we recently shared that if an intervention is to be made, it would be more logical to assume that a baseline update would be preferred at this point. Because there are no cars in our country with a base price below 200 thousand TL, all vehicles are subject to the highest level of 80% SCT.
In other words, SCT reduction will not fill the gap in the levels. However, in case of a base update; For example, if the 50 percent segment is reduced to the range of 400 thousand TL to 450 thousand TL instead of 120 thousand TL to 150 thousand TL, these levels will come back to life and prices will decrease.
Nureddin Nebati, the Minister of Treasury and Finance, who also made a statement on the subject, expressed a similar thing. Nebati said that there will be no SCT reduction in the car, instead they are working on an update of the base that meets today’s conditions.
Current automobile SCT base rates are as follows:
- Engine displacement not exceeding 1600 cc
- SCT base 120 thousand TLnot exceeding – 45 percent
- SCT base 120 thousand TLover the 150 thousand TLnot exceeding – 50 percent
- SCT base 150 thousand TLover the 175 thousand TLnot exceeding – 60 percent
- SCT base 175 thousand TLover the 200 thousand TLnot exceeding – 70 percent
- Others – 80 percent
- Engine displacement above 1600 cc and below 2000 cc
- SCT base 130 thousand TLnot exceeding – 45 percent
- SCT base 130 thousand TLsurpassing, 210 thousand TLnot exceeding – 50 percent
- Others – 80 percent
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