18.02.2025 12:00
After rumors about a reduction in Special Consumption Tax for scrap vehicles, opportunists sprang into action. Even before the issue was brought to the agenda of the Turkish Grand National Assembly (TBMM), it was observed that vehicles over 25 years old began to be sold at inflated prices in the market.
A bill was submitted to the Turkish Grand National Assembly (TBMM) for a reduction in Special Consumption Tax (ÖTV) on scrap vehicles. The proposal suggested offering ÖTV discounts to those who scrap their vehicles, provided that the new vehicles are produced in Turkey, in order to renew vehicles that are 25 years old or older and bring them back into the economy. The proposal included an exemption from ÖTV for owners of vehicles over 25 years old when purchasing new vehicles.
OPPORTUNISTS AT WORK
However, even before the issue entered the legislative process, the mere rumor of the scrap vehicle incentive was enough. According to information obtained from sources within the Ministry of Treasury and Finance, the scrap vehicle proposal will not become law. Following the bill proposal, opportunists sprang into action. Vehicles over 25 years old are being listed for at least double their value. The rumor of the scrap vehicle incentive has stirred the market. Older model vehicles are being offered for sale at prices significantly higher than their actual value on second-hand shopping sites. It has been observed that vehicles valued at 40,000 lira are being listed for sale at prices up to 100,000 lira.
IMPLEMENTED IN 2003
The scrap vehicle incentive was first implemented in Turkey in 2003. This helped to withdraw vehicles over a certain age from the market while also increasing new vehicle sales. This practice ended in 2004.