Turkey considers scrap vehicle incentives and ÖTV tax reductions

A legislative proposal regarding scrap vehicle incentives and Special Consumption Tax (ÖTV) reductions is currently under discussion in the Grand National Assembly of Turkey. The proposal, supported by MHP Kayseri Deputy İsmail Özdemir, aims to encourage the renewal of the national vehicle fleet by offering tax exemptions for citizens who scrap vehicles aged 25 years or older.

To qualify for the proposed incentives, new vehicles would need to be domestically produced in Turkey with a local content rate of at least 40%. This would include models such as Togg. The initiative seeks to improve road safety and reduce exhaust emissions by removing older, less efficient vehicles from traffic. Additionally, the proposal includes provisions to support low-income families in acquiring their first automobiles.

As of now, the regulation has not been passed into law. The incentive is not yet in effect, and the specific rates of tax reduction and final application criteria will only be confirmed once the legislative process is completed and the regulation is published in the Official Gazette.