The AK Party administration announced that there is no regulation in place for scrap vehicles to be exempt from Special Consumption Tax. The government is not working on any legal arrangements in this regard.

Following a proposal submitted to the Turkish Grand National Assembly (TBMM), the issue of a scrap vehicle incentive came to the agenda.

Members of parliament submit dozens of proposals to the TBMM every day. One of these proposals stood out, leading to interpretations in the public eye that a law granting a Special Consumption Tax exemption for scrap vehicles was imminent. However, the government has no plans in this regard, and the proposal has not even reached the committees yet.

The idea of removing vehicles over 25 years old from traffic to ease congestion and ensure environmental safety has been circulating for some time now, affecting the prices of second-hand cars. Rumors of the law being passed have caused even the market value of old vehicles to rise.

The scrap incentive is an application that allows for the exemption from Special Consumption Tax when purchasing a new vehicle in return for scrapping vehicles older than 25 years. Vehicle owners with such cars do not pay the Special Consumption Tax when purchasing a new vehicle. While this application has been implemented in the past, it is currently not on the agenda.

AK Party sources have stated that there is currently no such regulation being considered, highlighting that speculation regarding scrap vehicles in the market is unwarranted.

Sources pointed out that those creating such speculations by claiming that a “Incentive Law will be passed,” have been collecting numerous scrap vehicles from the market, noting that while there have been many demands for incentives, there is no current plan to introduce such a regulation or Incentive Law.

HOW DID THE ISSUE COME TO THE AGENDA?

MHP Kayseri Deputy Ismail Özdemir recently submitted a bill to the Assembly, proposing a Special Consumption Tax reduction for those who scrap their vehicles and buy new ones that are produced in Turkey, to revive older vehicles over 25 years and contribute to the economy.

The scrap vehicle incentive was first implemented in Turkey in 2003. This encouraged the removal of vehicles above a certain age from the market, subsequently boosting the sales of new vehicles. The program ended in 2004. From October 4, 2010, to December 31, 2011, a second scrap incentive was launched, with restrictions on the type of motor vehicles covered, including those weighing over 3.5 tons.