Amendments to the Special Consumption Tax (SCT) Rates Applicable in the Automotive Sector

The Law on the Amendment of the Law on the Protection of the Value of Turkish Currency, Certain Laws, and Decree Law No. 635 (Law), which contains provisions regarding the regulation of SCT rates in the automotive sector, and the Resolution of the President relating thereto were published in the Official Gazette dated 24.07.2025 and numbered 32965. 

The President has been authorized to increase up to three times or reduce down to zero the rates and the lower and upper limits of the SCT base applicable to the goods listed in List No. II of the Law and, within these limits, to determine different rates also for the engine cylinder capacities, ranges, and battery capacities of passenger cars and other motor vehicles, including station wagons and racing cars that are primarily manufactured for the transportation of people.

The SCT tax base thresholds and rates for certain fossil fuel-powered passenger cars and hybrid vehicles equipped with both an internal combustion engine and an electric motor, which were amended under the Law and subsequently modified by the Resolution of the President, were determined to range from a minimum of 70% to a maximum of 220%, depending on engine cylinder capacity and electric motor power.

In internal combustion engine models, the lowest SCT rate previously applied to vehicles with an engine cylinder capacity of up to 1600 cm3 will now apply to vehicles with engine capacities of up to 1400 cm3, and vehicles with engines of 1401–1600 cm3 will be evaluated within the higher bracket. Within this scope, vehicles with an engine cylinder capacity not exceeding 1400 cm³ will be subject to an SCT rate between 70% and 90%, depending on the vehicle’s tax-free price; vehicles with an engine cylinder capacity between 1401 and 1600 cm³ will be subject to a rate between 75% and 100%; vehicles with an engine cylinder capacity between 1601 and 2000 cm³ will be subject to a rate between 150% and 170%; and vehicles with an engine cylinder capacity exceeding 2000 cm³ will be subject to an SCT rate of 220%.

Vehicles with an engine cylinder capacity between 1601 and 1800 cm3 and an electric motor exceeding 50 kW will also be subject to an SCT of between 70% and 80% of the vehicle's tax-free price.

For vehicles equipped solely with an electric motor, the SCT tax base for models with a motor power of up to 160 kW has been increased from TRY 1,450,000 to TRY 1,650,000. The lowest SCT rate previously applied as 10% for electric automobiles has been raised to 25% under this regulation.

Depending on motor power, SCT rates between 65% and 75% have been introduced for electric automobiles. The lowest SCT rate previously applied as 10% for electric automobiles has been increased to 25% under this regulation. 

For plug-in vehicles equipped with an electric motor, SCT rates have been redefined based on engine volume and pre-tax price for models that meet a specific CO₂ emission level and have an electric range of at least 70 kilometers. For vehicles with an engine cylinder capacity not exceeding 1600 cm3, those with a pre-tax price not exceeding TRY 1,350,000 will be subject to 45% SCT, while those exceeding this amount will be subject to 75%. For models with an engine cylinder capacity between 1600 and 1800 cm3 and a pre-tax price not exceeding TRY 1,350,000, an 85% SCT rate will be applied.

On the other hand, the SCT rate for vehicles classified as pickup trucks, qualified as off-road vehicles, and with a maximum loaded weight not exceeding 3,500 kilograms, has been raised from 4% to 50% under the Law. In this regard, no change has been made to the rate by the Resolution of the President.