The crisis in the automotive industry, which has been going on since the beginning of the pandemic, still continues. While the chip crisis in new vehicles stopped production, the events caused the prices to increase.
The increase in new vehicles was also reflected in second-hand car prices. With the VAT regulation on second-hand vehicle sales, announced by President Erdogan the other day, the already high prices are expected to rise even more.
Auto dealers, who pay 1 percent VAT for the profits they make from the vehicles they previously sold, will pay 18 percent VAT after the VAT regulation.
With the regulation, the sector, which has been stagnant for the last 5 months due to the exorbitant increases experienced with the pandemic, will tend to increase prices, but the citizens will be affected by price increases again.
SHALLING INDUSTRY WILL STOP AFTER REGULATION
Making a statement to our newspaper regarding the regulation, Motor Vehicle Dealers Federation (MASFED) Chairman Aydın Erkoç pointed out that the sector has shrunk due to the crises experienced.
"While the fluctuating course of the exchange rate, high interest rates, problems in the production and supply of new vehicles due to the chip crisis, and high second-hand car prices will force both buyers and sellers, increasing the VAT rate to 18 percent will cause the industry to stop," he said.
PRICES WILL RISE TO MEET TAXES
EBS Consulting General Manager Erol Şahin evaluated the arrangement for our newspaper.
"It allows the selling auto dealers to pay 18 percent of the profits from the sales to the state. This rate was previously 1%. Shopkeepers will add this to the prices to make the payment, which will cause price increases for used vehicles. With this regulation, which came at a time when the market was stagnant, prices would make a difference between at least 2 percent and 5 percent," he said.