A new era in the vehicle market with SCT and VAT regulations

The new legislative proposal accepted by the Planning and Budget Committee of the Grand National Assembly of Turkey (TBMM) grants the President the authority to set different SCT rates for vehicles based on technical specifications such as engine displacement, range, and battery capacity.

This regulation is expected to be passed in the Assembly next week.

VAT EXEMPTIONS AND OTHER REGULATIONS

With the new regulations, articles added to the Value Added Tax (VAT) Law allow for the delivery of certain motor vehicles to be exempt from VAT for national defense and internal security needs.

In this context, vehicles delivered to institutions such as the Ministry of National Defense and the Ministry of Interior may be exempted from VAT.

Furthermore, amendments to the Liquefied Petroleum Gases (LPG) Market Law and the Electricity Market Law stipulate administrative fines and sanctions for those acting in violation of the LPG trade ban.

The Ministry of Industry and Technology is granted the authority to allocate a budget for the activities of the Turkish Space Agency.

SCT EXEMPTION TO BE PROVIDED ON INITIAL PURCHASE

With the amendment made to the Special Consumption Tax Law, it is aimed to provide an SCT exemption on the initial purchase of off-road vehicles and motorcycles that are not produced domestically and will be used by national security organizations.

SCT rates are being regulated to range between 80 percent and 220 percent based on the technical specifications of the vehicles.

Finally, the indicator figure used in the calculation of overtime pay for the provincial organization personnel of the Revenue Administration is being increased, thereby raising the proportion of personnel who can benefit from this payment.

These changes aim to strengthen tax justice and combat the informal economy.

News Source: 12punto