Incentives for Scrap Vehicles Back in the Spotlight

Last week, a legislative proposal made in the Turkish Grand National Assembly generated excitement in the automotive sector and for those looking to purchase a new vehicle. According to the proposal submitted to the Assembly by Kayseri Deputy İsmail Özdemir, those who scrap vehicles 25 years old or older would be allowed to purchase a vehicle exempt from the Special Consumption Tax (SCT) once.

According to Yiğitcan Yıldız's report, the proposal states that the vehicles exempt from SCT must be locally produced. However, there are also some shortcomings in the proposal that could disrupt the balance in the second-hand market. All these developments have raised questions about the past applications of scrapped vehicle incentives, which were last in effect in 2019.