Turkey increases special consumption tax on electric vehicles

* Photo: Pxhere

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The Special Consumption Tax (ÖTV) on electric vehicles has been increased. According to the Presidential decree published in the Official Gazette earlier today (February 2), the special consumption tax on electric vehicles has been increased by three to four times in Turkey.

The country has now raised the special consumption tax level on solely electric motor vehicles from between 3-15 percent to 10-60 percent.

For vehicles with an engine power of up to 85 kilowatts (kW), the country has raised the tax to 10 percent from 3 percent, for vehicles with a power of between 85-120 kW to 25 percent from 7 percent and for vehicles with a power of over 120 kW to 60 percent from 15 percent.

Incentive in the world, tax in Turkey

The automobile industry has been going through a serious transformation over the past 10 years. While several countries are poised to ban the use of diesel vehicles in the 2030s, they are also encouraging the use of environmentally-friendly electric vehicles.

In levying taxing for these vehicles, these countries are also trying to make these cars more affordable for consumers.

These incentives are especially the case for European countries. While the upper limit varies from country to country, Austria gives an incentive of up to 3 thousand Euro, Croatia up to 9 thousand 200 Euro, Estonia up to 5 thousand Euro, Finland up to 2 thousand Euro, France up to 7 thousand Euro, Germany up to 9 thousand Euro, Hungary up to 7 thousand 350 Euro, Ireland up to 5 thousand Euro, Italy to 6 thousand Euro, Portugal to 3 thousand Euro, Romania to 10 thousand Euro, Spain to 5 thousand Euro and the United Kingdom gives an incentive of up to 3 thousand pounds.

As for Greece, it repays 15 percent of the solely electric vehicles. In addition, the country pays another 1,000 Euro if the old vehicle is over 10 years old and scrapped. (HA/SD)