Previous day Ayas Felicity Party District Chairman Cengiz Zeyrek share it on social media to highlight the tax burden on the car in Turkey, “Ali went to the dealer to buy a car.
He buys 100 thousand TL for 430 thousand TL with the total taxes and the interest he will pay on the loan received from the bank. In other words, Ali brought one car to himself, 2 cars to the state and 1 car to the bank. ” Yes, Mr. Zeyrek’s logic regarding the tax burden was correct, but his account of the exit price was a bit wrong.
MATRAH MIXED
Indeed, highly complex tax system and debated for years in the automotive sector in Turkey. As you know, the SCT application, which is already at a very high rate between 45 and 160 percent, was gradually more complicated by staging a tax base (tax-free vehicle price) 3 years ago.
On top of that, the addition of 18 percent VAT and the subsequent acquisition of gradual MTV (Motor Vehicle Tax) 2 times each year created an insurmountable situation for both the citizen and the industry.
UP TO 206 PERCENT
Today, the SCT rates start from 45 percent and increase to 160 percent depending on the base prices of the cars, and an 18 percent VAT is added on top of this. It also reveals that currently vary from Turkey with 71 percent of the tax burden on the automobile 206.
How is the 300 thousand TL car becoming 1.5 million?
Turkey, US steel and by retaliation against the decision imposed an additional tax on aluminum imports of US origin 2 years ago the car had brought an additional 60 percent tax. It also added the highest tax goes up 461 percent from a car in Turkey.
To give a striking example to this; When a car with a 3-liter engine volume imported from the USA enters customs at a price of 300 thousand TL, an additional 60 percent U.S. customs tax is added. Thus, the price increases to 480 thousand TL before the SCT and VAT are paid.
160% SCT is added to this price since the engine volume is 3 liters. In other words, when 768 thousand TL SCT is added to 480 thousand TL, its price increases to 1 million 248 thousand TL. Even though it is good, we add 18 percent VAT on it. In other words, the total price of the vehicle rises to 1 million 472 thousand TL.
In addition to taxes, interest burden is also on board
If you want to get the car loan in Turkey today, you have to pay a higher tax on the interest burden outside. In line with the decrease in interest rates, when you use a loan of 100 thousand TL with a maturity of 36 months, you pay a total of 115 thousand TL with a monthly interest of 0.49 percent, you pay 130 thousand TL when the interest rate rises to 0.92, and 134 thousand TL when 1.03 percent.
In other words, when you use 300 thousand TL to buy a vehicle worth 500 thousand TL, you need to pay 45 thousand TL and 100 thousand TL loan interest.
