More tax hikes on SCT! A major blow to those wanting to buy a vehicle

While citizens were looking to purchase vehicles, the government pushed vehicle prices even higher with an increase in the Special Consumption Tax (SCT). 

Following President Tayyip Erdoğan's immediate use of the authority granted to him last week regarding SCT regulations, Treasury and Finance Minister Mehmet Şimşek also approved the SCT increase in the automotive market implemented in July. 

However, citizens expecting price cuts instead saw that increases were also applied to electric vehicles.

HIKED PRICES HIT VEHICLES

With the new regulation, many car models saw price hikes of up to 11%, and these increases are expected to reflect on the second-hand vehicle market as well. The Ministry of Treasury and Finance announced that this hike was implemented with the aim of 'reducing the current account deficit'. 

However, a point of controversy is that while the tax burden on domestic cars reaches up to 116%, both SCT and VAT rates for imported boats and yachts remain at zero. Critics stated that this decision increases the burden on low- and middle-income groups while sparing the wealthy.

HIKES FOR DOMESTIC CARS, INCREASES FOR ELECTRIC VEHICLES

With the new decree published in the Official Gazette yesterday, SCT rates for some car models were reduced by 5-10 points, while for others, they were increased by 10-20 points. 

For electric cars, the tax base thresholds wereraised and these vehicles'SCT rates were increased by 15 points each.While there are models that received discounts between 2.5% and 5.5%, some models saw price hikes between 5.5% and 11%.While there are models that received discounts between 2.5% and 5.5%, some models saw price hikes between 5.5% and 11%.While there are models that received discounts between 2.5% and 5.5%, some models saw price hikes between 5.5% and 11%.While there are models that received discounts between 2.5% and 5.5%, some models saw price hikes between 5.5% and 11%.While there are models that received discounts between 2.5% and 5.5%, some models saw price hikes between 5.5% and 11%.

BACKLASH ON SOCIAL MEDIA GROWS LIKE AN AVALANCHE

There was a backlash on social media over the fact that vehicle prices could change so drastically overnight. Citizens who were planning to buy a vehicle were left disappointed due to the price hikes.