Will the excise duty on automobiles decrease?

In the last few years, the prices of all technological products, especially automobiles, have increased due to exchange rate changes and inflation. As a result, people had expectations such as tax cuts. As a matter of fact, although there was no full response, steps were taken in this way, such as the SCT tax regulation. Now, a statement has come about the excise duty taken from the car.

The Minister explained: Will the excise duty on automobiles fall?

Will the excise duty on automobiles decrease? In the last week of last month, the SCT base was updated. After that, we saw that the price of cars sold under 600 thousand TL, including taxes, decreased by as much as 20 percent. However, this situation has started to lose its effectiveness even though it has not been a month yet.

The increase in automobile prices continues. For this reason, it seems that the next revived base ranges will lose their function. Those who are aware of the situation and who are considering buying a car in the near future, once again expect tax reductions.

However, the Minister of Treasury and Finance Nureddin Nebati openly said that cars are currently being sold in Turkey before they enter the country, the demand is very high and there will be no SCT reduction in such a difficult time.

The full statement made by the Minister of Treasury and Finance Nureddin Nebati (Relevant part is in bold) is as follows:

“We will enter the year much stronger. We are going to the elections next year. When we announce the year-end figures, you will see that Turkey, going to the elections, never compromised on the discipline in the budget. We are entering with a very strong and record breaking budget. The year 2022 was the most difficult year of the last 100 years for the world. When we look at our one-year performance in line with the Turkish Economy Model, which was revealed in the manifesto of our President on 20 December last year, we are beyond our targets in all, with one exception.

The only thing that tires us out is inflation. We broke his neck about inflation last month. Hopefully, we will close the year within the 65 percent band, which is our target at the end of the year. We will experience together that inflation, which every segment of the society will clearly feel, is going down rapidly. On the Treasury side, our experts are always in the field. Incoming data show that inflation will perform very well in December as well, in line with our targets.

Our expectation regarding inflation is that the trend that started this month will continue rapidly next year. With the measures we have taken, it reinforces our belief that the next year’s targets will be achieved at the end of the year. Budget performance, steps we have taken, macroeconomic measures, steps regarding taxes and financial performance show that we will enter the next year much stronger.

There is no excise duty reduction at this time. In a period when vehicles are difficult, there can be no SCT reduction. The work on the zeroing of the SCT, which was presented to us, the project of which was brought by a private company, is not a work done by our ministry. It is a project that the private sector has put forward from its own perspective. We do not have any work on whether this is implemented or not.

Both the normalization with Israel and our communication with the countries in the Mediterranean, our communication with Europe show that the upcoming period is not limited to the Gulf. Turkey emerged a little stronger from the epidemic and the Russia-Ukraine War. It is as if the crises have turned into opportunities that strengthen Turkey’s current structure.

The improvement in all areas, especially macroeconomic indicators, shows us this. When we take Istanbul to the center, we can easily reach 1.3 billion people with a distance of 3-4 hours. Turkey has become a full production center in the area where there is a trade volume of 26-27 trillion dollars. It has a significant potential to meet the supplies in a very short time. You also know our relations with Africa.

At the moment, our relations between the Gulf, Russia, Iran and Europe, especially in the Mediterranean, and when the Balkans are mentioned, Turkey has turned into a production and supply center. We can adapt very quickly. Therefore, we are entering a process in which there are important gains that will provide all kinds of real sector and financing in the upcoming period.

We pay for the operation in return for the operation. The timetable for KGF is almost clear. We will share a KGF package under 14 titles. For example, with EYT, we will support the payment of severance pay of the private sector regarding EYT (Retirement Aged Persons) and to provide financing for retirees and employees.

We will share the details of our package both in real estate, land, land production and construction. It will be a very unique model. We have a study that the middle and lower segments can reach very easily. Before concluding this, we have thoroughly focused on the real estate market in the last 3 months.

If anyone makes any speculative or manipulative transactions, the information and records of all of them are in our follow-up. A large part of the money we used in the KGF in 2020 went to foreign exchange and so on. Now our KGF package is becoming an invoice center. We will not allow this. We will not allow anyone in Turkey to exploit these opportunities for their own benefit by using public resources.

Of course there are exploits, but we act in a way that minimizes this. In the previous housing loan, we experienced a period when the prices of flats, buildings and real estates suddenly increased. We examined around 105 thousand taxpayers and did what was necessary. If there is anyone who will be inclined to any operation in places where the data is ready, I can tell you that we have the data of all of them. We pay for the operation in return for the operation.

I use my sentences deliberately. We will take steps to relieve our middle and lower income citizens, who are particularly affected by inflation.. It will be the most optimal point. Realizing the minimum wage at a level that satisfies the employee and the employer would be beneficial for our country. It is the SMEs that actually carry the Turkish economy.

Without ignoring its effect on inflation, the emergence of a minimum wage with a suitable compromise where our SMEs, small producers and workshops will be able to get their rights without causing trouble and our employees without their sweat drying up will be the most optimal point.

In the EYT regulation, our President makes his statements after the next week. We work with the Ministry of Labour. We are negotiating about the costs of this. I would like to express that we are ready to take any kind of support from our side to both the employer and the employee in terms of not being adversely affected by the production.

We don’t have much room to play in tax cuts. We have already taken steps to alleviate the pressure on inflation by realizing tax reductions in many areas since March in the fight against inflation in terms of macroeconomic measures.

According to the latest arrangements we made, we have fulfilled our promise to support some of our artists. There is a loss in the collective agreement made in the 8+6, 6-month period next year. By giving the inflation difference, there will be an automatic improvement in the salaries of our civil servants and retirees next year.

Let’s not ignore this year. This year, we have increased the minimum wage by 95 percent, and for the first time in its history, as we enter the second half of the year. It is seen that inflation will be completed at the level of 65 percent. We have made an improvement of + 30 points. We also provided a significant increase to our public employees, including our retirees, with the increases made in January and July, and this year we achieved an improvement of over 80 percent.

The year 2022 was one of the most difficult years in the world. We made an improvement for our retirees, 30 points above the inflation rate for the minimum wage, and almost 20 points for our employees. With 3600 indicators, we made a significant contribution to our employees and civil servants. In the health sector, we have provided the necessary contributions to both the pharmaceutical manufacturers and all of our healthcare professionals..

We made the law change and the Presidential Decree was published. Until the end of 2023, Currency Protected Deposits will continue to function as the most important part of financial instruments in the country. The amount in Currency Protected Deposits has now been flat for the last 2 months. Its contribution to the country is much more than its cost. It has a cost of 91.6 billion liras to the Treasury, but with the decrease in the volatility in exchange rates in the last 2 months, there is no burden on the Treasury in this regard.

Currency Protected Deposits hold almost a quarter of the total deposits. The most important contribution is; The weight of foreign exchange, which has increased up to 70 percent, has reached below 50 percent. This is truly an indicator of success for this year. The period ahead will be a period in which we personally witness that it has transformed into an area where foreigners see Turkey as a safe haven.

We broke the record in the history of the republic. While 200-250 thousand inspections and inspections are carried out annually, we exceeded 1 million this year. By the end of the year, we will have carried out an audit of more than 1 million 100 thousand. Let me state this clearly; We are taking steps to renew the technological infrastructure of our Revenue Administration, worth approximately 1.5 billion liras. In other words, I am calling out to all segments that make a living with the informal sector; You have little time left. Because as technology develops, leakage becomes more difficult for us. We are also taking steps regarding them..

We made a 50 percent discount on MTV, but in all exceptions, especially the deductions made in the salaries of wage earners, there are many opportunities in favor of the citizens due to the revaluation rate. The advantages of this are the part that far exceeds the increase in other fees and penalties. We will share about them. Other than that, there will be no discounts.

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