The Presidential Decree on changing the tax base limits to be applied in automobile purchases was published in the Official Gazette in the past few days.
In 2022, the base limits to be applied in the purchase of new vehicles have been changed.
Tax bracket increased from 3 to 5 for vehicles up to 1,600 cylinders. Automobiles with a SCT base not exceeding 120,000 liras will be included in the 45 percent tax rate bracket.
Evaluating the arrangement made for our newspaper, EBS Danışmanlık General Manager Erol Şahin said that a regulation far below the expectations was made in the SCT tax base.
"This regulation will affect a handful of cars if prices remain stable," he said.
Şahin underlined that although the addition of two new tax brackets to the tax base limits, which came with the regulation, is a good step, it was implemented late and is an insufficient regulation.
"The effect of the excise duty reduction on automotive prices will be between 3.3 and 11 percent. However, the price increases are not over yet due to the cost increase. Therefore, the effect of the discount will disappear in the first quarter. It is seen that the newly arrived 60 percent and 70 percent slices will minimize the problems such as asking for the difference between 50 and 80 percent, which caused intense complaints of the consumer before. Although it was late, the arrival of the intermediate slices was actually a positive step. At this point, I wish the limits of the tax base were useful and adjusted according to market conditions and inflation," he said.
PRICES HAVE INCREASED 50% FROM AUGUST TODAY, THE BASE IS INSUFFICIENT
Reminding the tax base regulation made last year, Şahin stated that the previous regulation lost its effect with the economic fluctuations experienced.
"The tax base arrangement made in the past became meaningless with the rise in prices in a short time. Now, 2 new slices have been put in between. Since August, vehicle prices have increased by at least 50 percent, but the base has been relatively insufficient against inflation. With the regulation, the equivalent of the 50 percent slice in the tax base did not increase at all. It was more of a 'base segments' arrangement than a baseline arrangement. The arrangement made in this state was half and incomplete because the tax base was not increased. It could not make a clear contribution to the sector and the consumer," Şahin said.
NEW REGULATION WILL AFFECT A FUNCTIONAL VEHICLES
Noting that the two tax brackets added with the new decision will affect a handful of vehicles due to the rising automobile prices, "In the new arrangement, 60 percent and 70 percent slices have been added, which will be applied to some vehicles if the figures remain stable. Dressing treatment will provide a very small amount of benefit to the citizen," he added.