Tax not collected on watches is being collected through SCT

In recent days, the contradiction between the tax exemption applied to luxury watches and the high taxes levied on basic consumer goods has sparked debate in the Turkish Grand National Assembly. Following the prominence of AK Party Eskişehir Deputy Nebi Hatipoğlu and AK Party Group Deputy Chairman Bahadır Yenişehirlioğlu in the news due to their expensive watches, the Special Consumption Tax (SCT) rates for watches have been put back on the table.

Just as an omnibus bill proposing the inclusion of certain precious stones under the scope of SCT and the taxation of crypto assets is being discussed in Parliament, harsh criticisms regarding the issue have come from the opposition.

CHP Manisa Deputy Vehbi Bakırlıoğlu, in his assessment in Parliament regarding the SCT, drew attention to the injustice in the practice by stating, "There are deputies in this Parliament wearing 10 million lira watches on their wrists. There is no SCT on these watches. There is SCT on bottled gas, diesel, and refrigerators. There is not 1 lira of SCT on a 10 million lira watch."

DISCREPANCIES IN SCT DRAW REACTION

While high rates of SCT are collected on products essential to the daily lives of citizens, such as bottled gas, diesel, and home appliances, the fact that no tax is collected on astronomically priced luxury watches has increased the reaction of the opposition. This situation has come to the agenda within the scope of the newly prepared omnibus bill, and calls are being made for a fair approach regarding the taxation of products that directly concern the public.

Criticisms regarding the fact that the SCT not applied to watches is collected in excess from basic necessity items seem likely to be debated again on the parliamentary agenda in the coming days. There is a prevailing expectation that such taxation discrepancies will be re-evaluated, especially during the legislative process of the omnibus bill.

News Source: 12punto