Zero car sales stopped! Here’s why

Due to the depreciation of the Turkish lira and high inflation in the last few years in Turkey, the prices of technological devices have increased many times over. Automobiles are one of these products. For this reason, there has been an expectation of tax cuts for a while. After the announcement of the SCT assessment in the past days, the sale of new cars came to a standstill. Here are the details…

Everyone is waiting for December 1, 2022 to buy a new car!

Treasury and Finance Minister Nureddin Nebati said earlier this month that the expectation of SCT reduction on vehicles is unrealistic. But recently, those who will buy new cars made a pleasing statement.

Minister Nebati has officially announced that they will make a special tax assessment. He said that this change will happen much sooner than expected. He even stated that it will come into effect as of December 1st. Therefore, all eyes will be on the Official Gazette on the specified date.

However, this had a negative impact on the market. Because everyone who is considering buying a new car or who has already ordered has decided to wait until December 1st. This caused sales to come to a near standstill.

Will the SCT tax regulation be effective?

If an increase of 100 percent is achieved with the SCT tax regulation, as expected, a decrease of up to 15 percent can be seen in cars sold under 900 thousand TL. This means that there will be a discount of over 20 thousand TL in some cars and over 100 thousand TL in others.

But let me point out that nothing is clear yet. In other words, although the expectations are for the SCT base rates, which are below 80 percent, to be brought back to life with new evaluations, we may even see a very different classification from the current one.

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
• Vehicles with an engine displacement of more than 2000 cc:
  • No excise tax base limit: 220 percent
• Only electric motor cars SCT base rates:
  • Engine power not exceeding 160 kW
    • Those whose SCT base does not exceed 700 thousand TL – 10 per cent
    • Others- 40 percent
  • Engine power exceeding 160 kW
    • Those whose SCT base does not exceed 750 thousand TL – 50 percent
    • Others – 60 percent

What do you think about this subject? Don’t forget to share your views with us in the comments!