There are ongoing warnings that excessively high taxes have a negative impact on the transition to new technologies in the automotive sector.
It is stated that the increase of the 10 percent SCT base limit for electric cars to TRY 1 million 450 thousand with the Presidential Decree provides an important advantage for domestic electric vehicle Togg. Nazmi Karyagdi, co-founder of Yeni Ekonomi Danismanlik AS, sworn financial advisor, stated that in the old normal, taxation was done to close the current account deficit, but this situation should change in the new normal.
Karyagdi attributed the delay in domestic electric vehicle production in Turkey to the high SCT and said, “If we raise the tax as sales increase in electric cars, we will miss the new automotive train again.”
Stating that Turkey has entered a new stage in industrialization and digitalization in the field of domestic automobile with Togg, Nazmi Karyagdi said, “The Turkish automotive and sub-industry, which has a significant experience based on many years, has thus taken an important step in the transition to the new economic order in a strong way.”
The first step to support the main automotive sector and the sub-industry is to remove the obstacles, and the tax reform is the most important step to be taken in this context, Karyagdi said. Stating that taxes used to be used to generate high revenues in the past, Karyagdi called for a new strategy in automobile taxation by renewing the old tax policy. The tax system significantly hinders the development of the automotive industry in Turkey, Karyağdı emphasized, and that the delay in the production of domestic automobiles is also due to this system.
Karyağdı warned that increasing taxes on electric cars as sales of electric cars increase and sales of fossil fuels decrease would mean missing the train once again in the automotive industry.
“The tax burden is 116 percent today”
In the article published by Nazmi Karyagdi and Bulent Tas on vergialgi.com on November 13, it was noted that the mistakes made in fossil fuel vehicles have started to be made for electric cars, and it was reminded that the lowest tax was 3 percent and the highest tax was 15 percent at first. In the article, it was pointed out that the lowest tax was raised to 10 percent and the highest tax to 60 percent, and it was emphasized that such a taxation model was unfavorable for the development of the sector. In the article, it was pointed out that in the 1990s, the tax burden was 5 percent of the vehicle price, while today this rate has increased to 116 percent, and the taxed price of the vehicle, which is TRY 463 thousand without tax, is 1 million liras.