Legislative proposal for SCT-free automobiles for retirees in Parliament: Details of the proposal clarified
A legislative proposal regarding the exemption of retirees from the Special Consumption Tax (SCT) when purchasing automobiles has been brought to the Parliament's agenda. If the proposal is enacted, the absence of the SCT cost on vehicles purchased by retirees will provide a significant advantage.
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While proposals aimed at improving the economic conditions of retirees have frequently come to the agenda recently, the proposal that would allow for the purchase of vehicles with an SCT exemption is one of the pieces of news that retirees have been waiting for.
If the proposal is accepted, retirees who meet certain conditions will not pay SCT when purchasing an automobile, on a one-time basis.
WHAT ARE THE DETAILS OF THE SUBMITTED PROPOSAL?
The regulation in question proposes a special tax exemption for retirees who are in the status of tradesmen and artisans and who receive a retirement pension through Bağ-Kur.
According to the regulation, individuals covered under the Law on Tradesmen and Artisans Professional Organizations No. 5362 and citizens who have retired from Bağ-Kur according to Article 4/1-b of the Social Insurance and General Health Insurance Law No. 5510 will be able to benefit from this right.
The proposal suggests that Bağ-Kur retirees who meet certain conditions be exempted from SCT when purchasing passenger cars.
CONDITIONS FOR BENEFITING FROM THE EXEMPTION
The regulation included in the legislative proposal covers only a specific group of retirees.
Accordingly, in order to benefit from the tax exemption, the person must both be in the status of a tradesman and artisan and receive a retirement pension through Bağ-Kur.
There are also some limitations in the proposal. Accordingly, the right to exemption can be used only once within 5 years from the date of retirement, and the vehicle purchased with the SCT exemption cannot be sold or transferred for 5 years.
The purpose of these conditions is stated as preventing the tax advantage from being used for commercial purposes.
THE PROPOSAL HAS NOT YET BEEN ENACTED
The proposal for providing SCT-free vehicles to retirees currently carries the status of only a legislative proposal submitted to Parliament. As required by the legislative process in Turkey, such proposals are first submitted to the Speaker of the Parliament and then evaluated in the relevant commissions.
Proposals that pass the commission stage are then voted on in the General Assembly.
If accepted, it enters into force by being published in the Official Gazette.