SCT Regulation in Zero Cars Has Negatively Affected Purchasing Power

SCT Regulation in Zero Cars Has Negatively Affected Purchasing Power
SCT Regulation in Zero Cars Has Negatively Affected Purchasing Power

The new SCT regulation announced on August 30, 2020 will change consumer behavior in the automotive market. With the new arrangement, there was an increase of 13 percent to more than 20 percent in high volume cars, while a 3 to 6 percent SCT reduction was made for domestic production and small volume vehicles.


The effect of the new regulations also affected the increasing prices of used vehicles. New regulations for assessing the world's largest manufacturer of alternative fuel systems in Turkey brc'n CEO Kadir Knitter, "the purchasing power of citizens negatively affected by the excise arrangements will be forced to take zero mileage vehicles. The increase in the second hand market has also reached levels that can no longer be prevented. "We have to know and learn how to look at our vehicles that we cannot buy or change in the best way, as well as the price of our vehicles."

The SCT regulation, which was announced at night last August, negatively affected the automotive industry, which had a difficult time due to the pandemic. With the new special consumption tax (SCT) regulation announced by the Presidential decree on the night of August 30, tax base amounts in the lowest SCT levels were increased by 15 thousand TL, from 70 thousand TL to 85 thousand TL. SCT percentages were increased from 60, 80, 100, 130, 110, 150 and 130 to 220.

SMALL VOLUME DOMESTIC DISCOUNT, HIGH VOLUME IMPORT TIME

The new SCT regulation was not only reflected in prices as an increase. While there was a 3 to 6 percent discount in small-volume domestic production cars, the prices of middle and upper class and high-volume cars were increased by 13 percent to 23 percent. With the last SCT regulation, 1600 percent of the price of an imported vehicle with a volume of 60 cubic centimeters and above is tax.

'THE OLD WAS ASSESSED WHEN I CANNOT BUY THE NEW'

The world to evaluate the change in the rate of excise duty largest alternative fuel systems manufacturer brc'n's Turkey CEO Kadir Knitter, "with the new excise duty arrangements, which closes challenging the 2019 and unable to catch the numbers expected because of the pandemic in 2020, it seems obvious negatively affected the automotive sector. The price increase in new vehicles makes the second hand market, which has been on the rise for a long time, even more unattainable. The citizen, who could not buy a new vehicle or change his vehicle, had to know the value of what he had, if he owned a vehicle. The car that the citizens got on was more valuable than ever. As Oscar Wilde points out: Some people know the price of everything but the value of nothing ”.

'THE CONSUMER WANT TO SAVE FUEL'

Stating that consumers who prefer zero-kilometer cars due to fuel savings but cannot change their vehicles with recent hikes should consider LPG conversion in their vehicles, Örücü said, “The increase in fuel prices due to the currency shock directs the consumer to vehicles with small volumes and high fuel savings. According to the data of the Automotive Distributors Association (ODD) in zero-kilometer vehicle preferences, consumers demanded vehicles with a small volume of 1600 cc and below 31 percent more than last year.

According to sales data in the first six months of 2020, 95 percent of the vehicles sold were small volume vehicles. Zero kilometer of the consumer with the SCT regulation

"We see that they will not be able to buy fuel-efficient vehicles and the options are running out on the second hand."

'LIVES LPG FUEL SAVINGS'

Underlining that LPG provides fuel savings of up to 40 percent, Kadir Örücü said, “Vehicles converted to LPG with the right application save up to 40 percent. The price advantage of LPG and the fact that new conversion systems can go long with much less fuel make LPG attractive. When we provide LPG conversion with BRC for a vehicle that consumes 50-60 cents of gasoline per kilometer under normal conditions, fuel consumption per kilometer drops to 25-30 cents. With a rough calculation, the owner of a vehicle that covers 50 kilometers per day saves up to 10 lira per day ”.



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