Ministry defends new SCT rates: 'Low impact on inflation'

The Ministry of Treasury and Finance has issued a statement regarding the change in the Special Consumption Tax (SCT) for passenger cars. The ministry emphasized that the main objective of this regulation is to contribute to the reduction of the current account deficit.

The statement reported that, based on the authority granted under Law No. 7555, changes were made to SCT bases and rates based on the engine cylinder volume, electric range, and battery capacity of the vehicles.

"LOW IMPACT ON INFLATION"

The statement, which included details regarding the regulation, contained the following remarks:

"This step was taken primarily to contribute to the reduction of the current account deficit. In this context, SCT rates for some vehicle groups with high sales volumes have been reduced by 5 to 10 points. Existing rates have been maintained for some models. For other models, SCT rates have been increased by 10 to 20 points. Since the changes include both downward and upward effects, the net annual inflation impact of the regulation is projected to be only 0.0019 points."

DETAILS OF THE REGULATION

Changes were also made to the SCT rates for electric vehicles. For these vehicles, where rates previously started at 10 percent and gradually increased up to 60 percent, the base limits were raised while the SCT rates were increased by 15 points for each bracket.

In this context, the new rates for vehicles with only an electric motor have been set at 25 percent, 55 percent, 65 percent, and 75 percent, respectively.

Similarly, SCT rates for vehicles known as "plug-in hybrids," which have both electric and internal combustion engines, were also increased by 15 points each.