This is not something new. Of course, tax rates have increased in recent years, but unfortunately, people have been paying taxes in this way and buying cars for 20 years now. It's like boiling a frog over low heat. Over time, people get used to it, and after a while, nothing surprises them. After the earthquake in 2023, the VAT rate increased from 18% to 20%. So, there was an extra 2% increase in everything. Although the rate may seem low, it's an incredibly large figure in a country where 83 million (and 10 million undocumented immigrants) people live.
The Finance Minister says we will spread the tax to the base, and he is actually doing it. Currently, there is a government that collects higher taxes from low-income earners, forgives millions of dollars in tax debt for large holdings that do not tax the rich. For example, if you buy a diamond, the tax is ZERO. Yes.. Zero.
For 2000cm3 and above: ÖTV = $1000 * 220% = $2200 KDV = ($1000 + $2200) * 20% = $644 Total Price = $1000 + $2200 + $644 = $3844 So, for a base price of $1000, the total price including taxes would be:
$2160 for 1600cm3 $3000 for 1600cm3-2000cm3 $3844 for 2000cm3 and above
Taxes unfortunately are not spent on the public as expected. They are being spent on exorbitantly priced tenders, unnecessarily built "palaces", and the luxury and extravagance of those in the government.
The product is subject to two major taxes called motor vehicle tax and special consumption tax based on the sale price. Under normal circumstances, it should be calculated based on the tax base, but in Turkey, motor vehicle tax is added to the sale price first. Special consumption tax is then levied on this resulting figure. In other words, a tax on tax is being imposed