Turkey mulls special consumption tax cut on EVs in boost for Togg
A prototype of an SUV model of Turkey’s first domestic car is seen during an event in Kocaeli province, northwestern Turkey, Aug. 24, 2021. (AA Photo)


Turkey is set to revise the special consumption tax levied on electric vehicles, reports said Friday, in what could turn into a fresh boost for the country’s first domestically produced vehicle that is set for launch later this year.

According to a bill that is expected to be submitted to Parliament in the coming days, the tax for electric vehicles with an engine power of up to 160 kilowatts (kW) and whose ratable value does not exceed TL 700,000 ($41,776) will be reduced to 10% from 60%, local media reported.

For the cars of the same power but with a ratable value above TL 700,000, the tax is envisaged to be 40%, private broadcaster Haberturk said.

With the changes, "we are trying to make prices of vehicles produced in Turkey more affordable," said ruling Justice and Development Party (AK Party) Group Deputy Chairperson Mustafa Elitaş.

The tax for vehicles with a power of over 160 kW and a ratable value below TL 750,000 will be set at 50%, while for those with the same power but a higher ratable value, it will be 60%.

Turkey raised the special consumption tax level on solely electric motor vehicles from between 3%-15% to 10%-60% in February 2021.

For vehicles with a power of up to 85 kW, it had raised the tax to 10% from 3%, for vehicles with a power of between 85-120 kW to 25% from 7% and for vehicles with a power of over 120 kW to 60% from 15%.

Turkey’s Automobile Joint Venture Group (Togg), the consortium developing the country’s indigenous car, aims to produce one million vehicles in five different segments by 2030.

It looks to launch its first mass-produced vehicle by the end of 2022.

President Recep Tayyip Erdoğan, in December 2019, unveiled prototypes for the SUV and a sedan, both fully electric and C-segment models.

Togg said it would produce five different models – an SUV, sedan, C-hatchback, B-SUV and B-MPV – through 2030. Mass production of the SUV will begin by the end of this year, with the sedan to follow.

Construction of Togg’s engineering, design and production facilities began on July 18, 2020. Built on an area of 1.2 million square meters (12.9 million square feet) in the Gemlik district of northwestern Bursa province, the facility is scheduled to be complete in the coming months.

Togg has opted for advanced lithium-ion battery technology company Farasis as its business partner for the battery.

The homegrown car can reach 80% charge in under 30 minutes with fast charging. It will have a range of between 300 kilometers to 500 kilometers (186 miles to 310 miles).