28 July 2025 Turkiye increases Special Consumption Tax rates for electrical vehicles - On 24 July 2025, Turkiye published new legislation that increases the Special Consumption Tax (SCT) rates for motor vehicles, effective from 1 August 2025, following the introduction of Law No. 7555 and Presidential Decree No. 10115.
- The SCT rates for electric vehicles classified under tariff 87.03 will vary based on engine volume and tax base, with rates ranging from 25% to 170%, depending on specific criteria such as cylinder volume and electric motor power.
- Additionally, a new 50% SCT rate has been introduced for off-road vehicles with a maximum laden mass not exceeding 3,500 kilograms, classified under tariff 87.04, impacting the overall cost structure for these vehicles.
- Businesses in the automotive and electric vehicle sectors should assess the implications of these tax changes, as the increased SCT rates may affect compliance processes, market competitiveness and consumer demand.
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Taken together, two developments published in the 24 July 2025 Official Gazette will increase the Special Consumption Tax (SCT) applicable to motor vehicles. Specifically, Law No. 7555, changes the SCT rates and the SCT bases for motor vehicles classified under tariff 87.03. And, Presidential Decree no. 10115, in force as of its publication in the Gazette, increases the SCT rates for motor vehicles, SCT base limits, and engine power limits for vehicles classified under tariff 87.03. SCT Law No. 4760 authorizes the President to make changes in the SCT rates, SCT bases and the limits of the goods such as base groups and engine power for the goods classified under tariff 87.03. Under Law No. 7555, 50% of the SCT rate for motor vehicles designed for carrying goods, classified under tariff 87.04, has been added to SCT Law No. 4760. As a result of these amendments, the SCT rates for motor vehicles and passenger cars classified under tariff 87.03 have been increased. Furthermore, the SCT rate of 50% for "Off-road vehicles with a maximum laden mass not exceeding 3500 kilograms," classified under tariff 87.04, has been added to the list numbered (II) of SCT Law No. 4760. According to SCT Law No. 4760, the rates for motor vehicles classified in the 87.03 tariff are determined according to the engine volume of the vehicles and the SCT tax base. The breakdown of these rates and the SCT rates determined according to the Presidential Decree published on 24 July are shown in the table below. HS Code | Commodity name | Excise tax rate (%) | 87.03 | - Others | | — Engine cylinder volume not exceeding 1400 cm3 | | — Those for which SCT base does not exceed 650,000 Turkish Lira (TL) | 70 | — Those for which SCT base exceeds 650,000 TL and does not exceed 900,000 TL | 75 | — Those for which SCT base exceeds 900,000 TL and does not exceed 1,100,000 TL | 80 | — Others | 90 | — Engine cylinder volume exceeding 1400 cm3 but not exceeding 1600 cm3 | | — Those for which SCT base does not exceed 850,000 TL | 75 | — Those for which SCT base exceeds 850,000 TL and does not exceed 1.1m TL | 80 | — Those for which SCT base exceeds 1.1m TL and does not exceed 1.65mTL | 90 | — Others | 100 | — Engine cylinder volume exceeding 1600 cm3 but not exceeding 2000 cm3 | | — Those with an electric motor, where the electric motor power exceeds 50 kW and the engine cylinder volume does not exceed 1800 cm³ | | — - Those for which SCT base does not exceed 1.25m TL | 70 | — -Others | 80 | — Others | | — - Those for which SCT base does not exceed 1.65m TL | 150 | — -Others | 170 | — Engine cylinder volume exceeding 2000 cm3 | | — Those with an electric motor, where the electric motor power exceeds 100 kW and the engine cylinder volume does not exceed 2500 cm³ | | — - Those for which SCT base does not exceed 1.65m TL | 150 | — -Others | 170 | — Others | 220 | — Vehicles that can be charged from outside the vehicle with an electric motor, carbon dioxide emissions below 25 grams per weighted combined kilometer, and those with a range of 70 kilometers or more with equivalent electrical energy | | — Engine cylinder volume not exceeding 1600 cm3 | | — - Those for which special consumption tax base does not exceed 1.35m TL | 45 | — -Others | 75 | — Motor cylinder volume exceeding 1600 cm³ but not exceeding 1800 cm³, with an SCT base not exceeding 1.35m TL. | 85 | — Only those with electric motors | | — Those for which engine power does not exceed 160 kW | | — - Those for which special consumption tax base does not exceed 1.65m TL | 25 | — -Others | 55 | — Engine power exceeding 160 kW | | — - Those for which special consumption tax base does not exceed 1.65m TL | 65 | — -Others | 75 |
Moreover, the SCT rate of 50% for goods defined as "off-road vehicles with a maximum laden mass not exceeding 3500 kilograms" classified in the 87.04 tariff has been added to the list numbered (II) of SCT Law No. 4760. The following table shows the line item and the SCT rate that has been added after the "Others" line in tariff 87.04 to the list numbered (II). HS Code | Commodity Name | Excise tax rate (%) | 87.04 | — Off-road vehicles with a maximum laden mass not exceeding 3500 kilograms | 50 |
Affected multinational enterprises in the automotive and electric vehicle sectors should assess the implications of these tax changes, as the increased SCT rates may affect compliance processes, market competitiveness and consumer demand. | * * * * * * * * * * | | Contact Information | For additional information concerning this Alert, please contact: Kuzey Yeminli Mali Müsavirlik A.S., Istanbul | | Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor |
Document ID: 2025-1600 |
