Regulation awaited by scrap vehicle owners is on its way to Parliament

A new legislative proposal submitted to the Grand National Assembly of Turkey (TBMM) envisions the cancellation of accumulated Motor Vehicle Tax (MTV) debts and late payment interest for 2000 model and older vehicles that meet certain conditions if they are scrapped. The proposal will now be evaluated at the committee stage.

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A new legislative proposal regarding the scrap vehicle regulation, which has been on the agenda in Turkey for a long time, has been submitted to the Grand National Assembly of Turkey. The proposal, prepared by CHP Gaziantep Deputy Melih Meriç, envisions the deletion of registration records for old vehicles that meet certain conditions and the cancellation of accumulated Motor Vehicle Tax (MTV) debts belonging to these vehicles.

NEW PROPOSAL FOR SCRAP VEHICLES ON PARLIAMENT'S AGENDA

The "Draft Law on Amending the Motor Vehicle Tax Law," prepared by the CHP and submitted to the Speaker of the TBMM on June 17, 2026, was referred to the Planning and Budget Committee on June 19.

In the justification for the proposal, it was stated that a large number of vehicles that have not been used in traffic for many years and lack inspection and insurance are still present in traffic registration records. It was stated that this situation creates both a tax burden for vehicle owners and increases administrative procedures for public institutions.

MTV DEBTS FOR OLD VEHICLES ON THE AGENDA

The proposal emphasized that for owners of trucks, tractors, and similar vehicles that have completed their economic life, MTV debts continue to accumulate for vehicles that cannot be used.

The justification included the assessment that collection and follow-up procedures carried out for vehicles that are not actually in traffic also create an additional burden on public resources.

WHO WILL BE ABLE TO BENEFIT FROM THE REGULATION?

According to the draft law, the regulation will cover motor vehicles that are 2000 model and older and meet certain conditions.

Accordingly, the vehicles must meet the following conditions:

  • Not having undergone inspection within the last 5 years prior to the date the law enters into force,
  • Not having mandatory traffic insurance,
  • No record of any sale, transfer, or use detected in the last 5 years.

Vehicle owners will be able to apply within 1 year after the regulation enters into force.

CANCELLATION OF DEBTS ENVISIONED

According to the proposal, if the vehicles covered are delivered to the Machinery and Chemical Industry Corporation (MKE), licensed recycling facilities, or organizations authorized by the Ministry of Environment, Urbanization and Climate Change, it is envisioned that the MTV debts, as well as late payment interest, late payment surcharges, and administrative fines belonging to these vehicles will not be collected.

For vehicles that do not actually exist or are determined to have lost their status as motor vehicles, it is planned to delete their traffic registration records and cancel their debts after the necessary examinations.

LIFTING OF LIENS ALSO WITHIN THE SCOPE OF THE PROPOSAL

It is envisioned that the transactions to be carried out within the scope of the regulation will be exempt from taxes, duties, and fees.

Furthermore, the lifting of liens applied to the vehicles covered due to public receivables is also among the articles of the proposal.

SANCTIONS ENVISIONED FOR FALSE DECLARATIONS

The draft law states that legal action will be taken against individuals who benefit from the regulation by making false declarations.

In the event that a vehicle whose registration record has been deleted is later determined to actually exist, it is envisioned that the vehicle will be re-registered and the deleted tax debts will be reassessed.

The proposal is expected to come to the agenda of the TBMM General Assembly following committee deliberations.