Turkey Updates Tax Structure on Fossil Fuel and Hybrid Vehicles

Turkey has revised the special consumption tax for fossil fuel and some hybrid vehicles to protect its currency. Changes affect tax base thresholds and rates, with variations depending on engine type and displacement. New rates range from 25% to 220% based on vehicle specifications.

In a move to safeguard its national currency, Turkey has updated the special consumption tax applied to certain fossil fuel-powered and hybrid vehicles, as reported by the official gazette on Thursday.

The revised taxation affects the thresholds and rates for passenger cars powered by fossil fuels and hybrid vehicles, which incorporate both fuel-driven and electric engines.

According to the legislation, tax rates will vary from 70% to 220% depending on engine displacement, with a minimum rate of 25% for electric vehicles and 45% for hybrid cars.

(With inputs from agencies.)