Recent price fluctuations in the Turkish automotive market have made owning a new car even more difficult for many citizens. High Special Consumption Tax (ÖTV) and rising production costs are transforming cars from a basic necessity into a luxury item. This situation has significantly postponed the dream of owning a new car for retirees who have spent many years in the workforce.
A bill brought to the agenda of the Turkish Grand National Assembly, directly affecting pensioners, has stirred up activity in the automotive sector. The bill includes a provision specifically targeting tradespeople and artisans receiving old-age pensions through Bağ-Kur (the Turkish social security system for self-employed individuals), offering a special consumption tax (ÖTV) exemption for a brand-new vehicle. These financially stringent conditions stipulate that the beneficiary must utilize the exemption within five years of their retirement date.
Following the purchase of a vehicle exempt from Special Consumption Tax (SCT), there is an important restriction regarding its sale: the exempted vehicle cannot be sold or transferred to another person for a full five years. If the sale occurs before this period, the state will reclaim the SCT amount from the owner, along with accrued interest. However, if the vehicle is completely scrapped due to events such as earthquakes, fires, floods, or serious accidents, the retiree regains the right to purchase a vehicle exempt from SCT.
If this draft law is approved by parliament, the removal of the tax could lead to a significant drop in car prices. Comparing the current sales prices of popular models after the removal of the Special Consumption Tax (SCT) reveals significant differences. For example, the current price of an Opel Corsa (1.2L) in the B segment is 1.290.000 TL, but after the exemption it could drop to approximately 758.823 TL. The sticker price of a Fiat Egea Sedan (1.4L), currently 1.409.900 TL, could fall to approximately 805.657 TL. The price of a Hyundai i20 (1.2L) could drop from 1.425.000 TL to approximately 814.285 TL, while a Renault Clio (1.0L) could decrease from 1.699.000 TL to 970.857 TL.
Looking at other prominent models, the Renault Megane (1.3L) and Toyota Corolla (1.5L) could see a price drop from 1.770.000 TL to 1.011.428 TL, the Renault Duster (1.0/1.2L) from 1.780.000 TL to 1.017.142 TL, and the Peugeot 2008 (1.2L) from 2.329.000 TL to 1.293.888 TL. Among hybrids, the Toyota C-HR (1.8L) could reduce its price from approximately 1.999.000 TL to 1.175.882 TL. These figures demonstrate the potential magnitude of the exemption's impact on the market.
Currently, the law is not yet in effect, and for the proposal to become law, it needs to pass through the parliamentary committees, be submitted to the General Assembly for approval, then be signed by the President and published in the Official Gazette. It is anticipated that this bill, concerning retired tradesmen and artisans, will remain among the most discussed topics on the parliamentary agenda in the coming days.
