News and developments
Turkey Proposes Vehicle SCT Adjustments & Broadens Tax Tools
A draft law submitted to Parliament on 16 June 2025 proposes amendments to the Motor Vehicles Tax Law and the Special Consumption Tax (SCT) Law. The proposal would empower the Presidency to adjust SCT rates dynamically based on electric vehicle battery range, engine size, and carbon footprint. Market stakeholders have voiced concerns regarding potential price volatility, but the Ministry of Treasury and Finance clarified that no immediate price impacts are expected.
Additionally, the year end 2024 saw SCT increases of 6% on both fuel and tobacco, linked directly to the Producer Price Index. Authorities have stated that these adjustments are a measure to support the 2025 disinflation roadmap, designed to avoid triggering broader inflationary pressures.