Turkey moves to overhaul vehicle tax rules and clarifies ATV taxation

The Turkish Parliament’s Planning and Budget Committee approved an amendment to the Special Consumption Tax (ÖTV) law that adds a vehicle’s drivetrain – such as 4×4, 4×2, front‑wheel or rear‑wheel drive – as a factor in determining the tax rate. The change does not immediately raise rates but gives the President authority to set different ÖTV percentages based on drivetrain type.

Separately, the Danıştay Tax Courts Board issued a precedent‑setting ruling on the classification of vehicles sold as “tractors” but technically ATVs. The decision requires courts to examine technical specifications rather than rely solely on paperwork, ensuring that ATVs are taxed at the applicable 25 % ÖTV rate instead of the zero rate for tractors.

A related proposal to allow certain retirees to purchase vehicles without ÖTV has not yet become law; it remains in the parliamentary commission stage. Together, these developments signal a significant shift in Turkey’s vehicle taxation framework.