Special Consumption Tax base, VAT exemption and upper limit penalties have become law!

The Law on the Protection of the Value of Turkish Currency and the Bill on Amending Certain Laws were accepted by the Turkish Grand National Assembly and became law.

According to the prominent articles of the bill, which was accepted by the General Assembly of the Turkish Grand National Assembly and became law, the President will be authorized to make decisions regarding the purchase and sale of foreign exchange, currency, bonds, and precious metals and precious stones, and all goods and securities manufactured from or containing them, the refining of precious metals, and the export and import of all such goods and securities, commercial papers, and all means and documents used for payment, and to protect the value of the Turkish currency.

If the unauthorized activity repeats, the penalty will be applied at the upper limit.

Those who engage in unauthorized activities without obtaining the necessary permits or documents in matters requiring an activity permit or authorization certificate will be subject to administrative fines ranging from 50,000 to 250,000 Turkish Lira, and all activities at the workplace where the unauthorized activity occurred will be suspended for one month. If the unauthorized activity recurs within five years of the date the administrative fine decision becomes final, the administrative fine will be applied at the upper limit.

VAT exemption for the Ministry of National Defense, National Intelligence Organization, SSB and the Ministry of Internal Affairs

The delivery of light commercial vehicles, trucks, pickup trucks, off-road vehicles in the pickup truck group, and motorcycles that will be purchased and used exclusively for national defense and internal security needs by the Ministry of National Defense, the Ministry of Internal Affairs, the Presidency of Defense Industries, and the National Intelligence Organization will be exempt from VAT.

The President will be authorized to determine the SCT bases.

Light commercial vehicles not domestically produced to meet the needs of relevant organizations have also been included in the provision. The President will be authorized to increase the rates for goods listed in List II of the Law, as well as the lower and upper limits of the Special Consumption Tax (SCT) bases underlying these rates, by up to three times, or to reduce them to zero. Furthermore, provided these rates remain within these limits, he will also set different rates for the engine displacement, range, and battery capacity of passenger cars and other motor vehicles, including station wagons and racing cars, primarily designed for the transport of passengers.