New regulation for disabled individuals in tax-free vehicle purchases: Period extended

The Bill on Amendments to the Civil Servants Law and Certain Laws and Decree-Laws was accepted and enacted in the Grand National Assembly of Turkey (TBMM).

The Special Consumption Tax (ÖTV) Law is also included in the enacted legal regulation. An amendment was made regarding the exemption for vehicle purchases by disabled and incapacitated individuals in the ÖTV Law.

FROM ONCE EVERY 5 YEARS TO ONCE EVERY 10 YEARS

Accordingly, the President will be authorized to determine, collectively or separately, the vehicles that will fall under the scope of this exemption based on the domestic contribution rate, engine cylinder volume, emission type, and value.

Disabled individuals will be able to benefit from the tax-free vehicle right once every 10 years, and a 20 percent domestic production requirement has also been introduced for the vehicle to be purchased.

MORE THAN 300 THOUSAND TAX-FREE VEHICLES SOLD

It is estimated that 300 thousand tax-free automobiles were sold in the first 10 months of 2024. The ÖTV exemption limit, which is 1 million 591 thousand 200 TL in 2024, is expected to rise to 2 million 290 thousand 214 TL as of January 1, 2025.

WHO CAN BENEFIT FROM THE ÖTV EXEMPTION?

Citizens with a disability of 90 percent or higher can benefit from the ÖTV exemption. While this regulation is intended to facilitate vehicle purchases for individuals with disabilities, there is no age limit for those with a disability of 90 percent or higher. Furthermore, these individuals can use the vehicle together with people they designate.

If the disabled individual is under the age of 18 or is unable to drive, their family has the right to use the vehicle.

Family members can also carry out the vehicle purchase process. Spouses or children of martyrs, or if they do not have a spouse or children, their parents, can benefit from this exemption on a one-time basis.

VEHICLES THAT CAN BE PURCHASED WITH ÖTV EXEMPTION

For tax-free vehicle purchases by disabled citizens, passenger cars with an engine cylinder volume of 1600 cc and below, as well as light commercial vehicles and motorcycles with 2800 cc and below, can be chosen. These vehicles are offered for sale in accordance with criteria determined to improve the quality of life of disabled individuals.