Attention car buyers: Special Consumption Tax (SCT) rates and tax bases for automobiles have been updated! Prices will increase

With the new regulation published in the Official Gazette, Special Consumption Tax (SCT) rates for all automobile groups have been updated, and tax base limits have been increased. In this context, the lowest SCT rate for electric vehicles has been raised from 10 percent to 25 percent.

NEW SCT RATES BY FUEL TYPE

With the change, the lowest SCT rate for plug-in hybrid vehicles has been set at 45 percent, while this rate will be at the 70 percent level for internal combustion (gasoline, diesel, and LPG) vehicles and hybrid models. The highest tax rate will continue to be applied at 220 percent.

SCT CLASSIFICATION BY ENGINE VOLUME UPDATED

The engine volume criterion for internal combustion vehicles has also changed. The lowest SCT rate, previously applied to vehicles with an engine volume of up to 1.6 liters, will now only be valid for models with 1.4 liters and below. Thus, vehicles with 1.5 and 1.6-liter engines have been moved to a higher tax bracket.

NEW SCT RATES DETERMINED IN DETAIL

For automobiles with an engine volume of 1.4 liters and below:

70 percent for those with a pre-tax price of up to 650,000 TL,

75 percent for those between 650,000 TL and 900,000 TL,

80 percent for those between 900,000 TL and 1,100,000 TL,

90 percent for those exceeding 1,100,000 TL will be applied.

For automobiles with an engine volume between 1.4 and 1.6 liters:

75 percent for those up to 850,000 TL,

80 percent for those between 850,000 TL and 1,100,000 TL,

90 percent for those between 1,100,000 TL and 1,650,000 TL,

100 percent tax rate will be applied for models above 1,650,000 TL.

For vehicles with an engine volume between 1.6 and 2.0 liters:

150 percent for models with prices below 1,650,000 TL,

170 percent SCT will be deducted for those above.

For models above 2.0 liters:

The highest SCT rate of 220 percent will be applied.

TAX BASE LIMITS CHANGED FOR ELECTRIC VEHICLES

For electric vehicles, the tax base limit for models with an engine power of 160 kW and below has been increased from 1,450,000 TL to 1,650,000 TL.

The SCT rate for models below this price has been set at 25 percent, and 55 percent for those above. Previously, rates of 10 percent and 40 percent were applied in the same group.

For models above 160 kW:

Models at 1,650,000 TL and below will be subject to 65 percent,

Those above will be subject to 75 percent SCT.

REGULATION FOR PLUG-IN HYBRID VEHICLES

New tax rates have also been announced for hybrid vehicles that have an electric motor and can be charged externally. For vehicles with a weighted combined carbon dioxide emission of less than 25 grams per kilometer and an electric range exceeding 70 kilometers;

Models with an engine volume not exceeding 1.6 liters and a pre-tax price of up to 1,350,000 TL will be subject to 45 percent,

Models exceeding this price will be subject to 75 percent SCT.

For vehicles with an engine volume in the 1.6 – 1.8 liter range and a tax base not exceeding 1,350,000 TL, the SCT rate will be 85 percent.

HOW WILL IT AFFECT WHICH VEHICLES?

With the new regulation, the SCT rate for internal combustion engine models with an engine volume of 1.4 liters and below, priced up to 1,290,000 TL, is being reduced from 80 percent to 70 percent.

Similarly, the tax rate for 1.4-liter models sold for up to 1,944,000 TL has been reduced from 80 percent to 75 percent. Prices for these vehicles are expected to decline.

On the electric vehicle side, the 10 percent SCT rate applicable to models under 1,950,000 TL has been increased to 25 percent.

This change may cause price increases for models such as the “Togg T10X” and “Tesla Model Y Juniper SR”.