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Specific car purchases in Turkey to be exempt from special consumer tax

Business Materials 4 October 2017 16:19 (UTC +04:00)

Baku, Azerbaijan, Oct. 4

By Rufiz Hafizoglu – Trend:

The purchase of a domestic car will be exempted from paying a special consumer tax in Turkey, the country’s Ministry of Science, Industry and Technology of Turkey told Trend Oct. 4.

The ministry said that such a decision was made in order to increase competitiveness of domestic cars with imported cars on domestic market, as well as with products of foreign car assembly firms localized in Turkey.

Meanwhile, it is planned to encourage Turkish state organizations and companies that purchase and lease domestic cars, added the ministry.

The company that will participate in manufacturing domestic cars will be determined in the coming days, according to the ministry.

It should be noted that in Turkey, there is a special consumer tax, which is levied on the supply, initial purchase or import of specific goods, including cars.

Earlier, the Ministry of Science, Industry and Technology told Trend that Turkey is interested in exporting its domestically-made cars to neighboring countries.

Turkey was negotiating with a number of companies that could participate in assembly of domestic cars. Negotiations were underway with such companies as Fiba, Karsan, Kale, Sanko, Koc, BMC and Vestel. Mass production of domestic Turkish cars is expected to start by late 2019.

Turkey obtained a license from Swedish automaker Saab to manufacture a car based on the 9-3 model. Turkish domestic cars, which are planned to be based on Saab 9-3, will come with a variety of engines and in several types.

Turkey ranks sixth in Europe in car production. Models of Ford, FIAT, Renault, Toyota, Honda, Opel, Hyundai, Mercedes-Benz and MAN are currently assembled in Turkey. Moreover, Turkey manufactures local brands of buses, such as BMC, Temsa and Otokar.

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Follow the author on Twitter: @rhafizoglu

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