Aegean Automotive Association (EGOD) Chairman of the Board Mehmet Torun said that President Recep Tayyip Erdoğan's announcement of the removal of SCT in commercial vehicle replacement is positive for the automotive industry. Stating that its scope should be extended not only to replacement but to all vehicle purchases, EGOD President Torun said, “SCT should be gradually removed from all vehicles, the target should be zero SCT. The SCT revenue, which the state will gradually reduce and waive, will not only bring a sustainable and increasing income system to the tax ecosystem, but will also be the beginning of a period that will please investors, producers, exporters and consumers.
President Recep Tayyip Erdoğan made a speech in Gemlik, where he came for the TOGG Siro Battery Development and Production Campus Groundbreaking Ceremony: “Our tradesmen, who operate urban taxis, minibuses, minibuses, midibuses, buses, tow trucks, and commercial freight transport by trucks, will not pay SCT when renewing their vehicles of the same type. The statement received positive reactions from the industry.
“The state can generate more income by resetting the SCT”
Mehmet Torun, Chairman of the Board of EGOD, said that President Erdoğan's statement is important and will have a positive impact on the sector. Stating that the SCT greatly increased the vehicle prices in the automotive sector, EGOD President Torun said, “However, we want to accept this reduction as the 'first step'. This SCT reduction should be made not only for those who change vehicles, but also for those who will buy these vehicles for the first time and those who want to buy passenger cars.
3 million production, 1 million employment in the medium term
Pointing out that zeroing the SCT on all vehicles should be the main target, Torun said, “In 2022, 40 billion TL, which corresponds to 138 percent of the total SCT income, belongs to the automotive sector, and there is an MTV income of around 23 billion TL. It is impossible to reset the SCT overnight, which means a serious tax loss for the state. Zeroing the SCT needs a strategic plan that will cover a period of 10-15 years. This plan sector has already worked. According to the scenario, the state will not lose any tax revenues, domestic sales will reach around 2 million units per year from the middle term, the number of 210 cars per thousand will reach 400, the automotive export volume of 30 billion dollars will increase to around 55 billion dollars, and the country's domestic and foreign sales will increase to around 2 billion dollars. It has been calculated that the automotive production capacity, which is currently 3 million units per year, may increase to 1 million in the medium term and create employment for a total of 14 million people by gaining attraction for investors producing automobiles. Automotive sales SCT revenue, which the government will gradually reduce and waive, will not only bring a sustainable and increasing income system to the tax ecosystem, but will also be the beginning of a period that will please investors, producers, exporters and consumers. In addition, it will rejuvenate vehicles with an average age of 55 in our country and will bring us closer to the fitfor 0 carbon XNUMX target with technological, environmentalist, new generation cars.”