Turkiye increases Special Consumption Tax rates for electrical vehicles

• Increased Special Consumption Tax Rates: On July 24, 2025, Turkiye announced an increase in Special Consumption Tax (SCT) rates for motor vehicles, effective August 1, 2025. The new rates for electric vehicles under tariff 87.03 will range from 25% to 170%, depending on factors such as engine volume and tax base.
• New SCT for Off-Road Vehicles: A new 50% SCT rate has been introduced for off-road vehicles with a maximum laden mass not exceeding 3,500 kilograms, classified under tariff 87.04, impacting the overall cost structure for these vehicles.
• Impact on Automotive Sector: Multinational enterprises in the automotive and electric vehicle sectors must evaluate how these tax changes will affect compliance processes, market competitiveness, and consumer demand, as the increased SCT rates could lead to higher prices for consumers.

Source EY

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Turkey Revises Special Consumption Tax Rates for Motor Vehicles and EVs Effective July 24

• Presidential Decision No. 10115 published on July 24 in the Turkish Official Gazette
• Redetermined special consumption tax rates for motor vehicles
• Tax rates between 70 and 220 percent for various vehicle types
• Tax rates between 45 and 85 percent for hybrid vehicles based on tax base and engine volume
• 25 percent tax for electric vehicles with engine power not exceeding 160 kW and tax base not exceeding 1.65 million lira
• 55 percent tax for other electric vehicles with engine power not exceeding 160 kW
• 65 percent tax for electric vehicles with engine power exceeding 160 kW and tax base not exceeding 1.65 million lira
• 75 percent tax for other electric vehicles with engine power exceeding 160 kW
• Decision effective immediately on the publication date

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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