A newly introduced tax exemption paves the way for Istanbul's uncomfortable, old taxicabs to be replaced with luxury cars. The city's association for drivers unveiled two high-end Mercedes taxis as the first members of the taxi fleet that will serve millions in the most populated city of Turkey.

New taxis may give an upper hand for drivers forced to compete with ride-hailing services and travel agencies providing luxury transportation for moneyed customers often as airport shuttle services.

The upgrade arrives thanks to the Oct. 13 lifting of the Special Consumption Tax from commercial vehicles. The tax, charged for luxury goods consumption, was a source of complaints among taxi drivers who although recently upgraded their cars to newer models still employ low-segment vehicles. Yahya Uğur, the head of taxi operators association ITEO said they expected all operators to comply with "public demand for better cars" after the tax exemption.