Auto taxes set to rise by 7.8 percent in 2013.
Turkey's motor vehicle tax (MTV) will rise by 7.8 percent in the year 2013, the Finance Ministry announced in a statement on their website on Tuesday. The hike is meant to adjust tax prices for inflation and will see a rise in the annual tax on all types of vehicles and an increase in fines for driving violations.
Turkey's vehicle tax regime levies annual taxes based on engine size, charging more for higher power engines and newer models. The new tax will see the price for vehicles with an engine displacement less than 1300 cc -- mostly found on hybrid vehicles and ultra light sedans -- taxed at a rate of TL 518 in 2013, up from TL 480 in 2012. Vehicles with a displacement between 1301 cc and 1600 cc -- a classification which makes up the majority of privately owned autos in Turkey -- will meanwhile be taxed TL 828 in 2013, up from this year's TL 768. The 1601 cc to 1800 cc bracket, which is primarily composed of luxury and high-performance private vehicles, will meanwhile cost their owners TL 1,457 in 2013, up from 1,352 in 2012.
The progressive tax regime has seen automakers scramble to roll out smaller vehicles into the Turkish market. At the Istanbul Autoshow, which is being held this week in the Beylikduzu neighborhood of Istanbul, Volkswagen, Honda, Toyota, Peugeot, Hyundai, Ford and Citroen have all introduced hybrid or smaller displacement vehicles in the hope of taking advantage of the tax scheme. The taxes come as motorists find themselves squeezed by rising fuel taxes, which have made Turkish fuel the second most expensive in the world.
The Finance Ministry's tax hike was prepared to keep prices constant in real value in connection to inflation data published annually by the Turkish Statistics Institute (TurkStat).
The tax hike will see a variety of motor fines increase along with auto taxes. Drivers caught intoxicated at the wheel will face a fine of TL 701 in 2013, while those running red lights will pay TL 166. Motorists driving up to 30 kilometers over the speed limit will pay TL166, while those driving more than 30 km over the limit will pay TL 244.
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|Publication:||Today's Zaman (Istanbul, Turkey)|
|Date:||Nov 6, 2012|
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