Title: New 40% Local Production Requirement for Exemption of Special Tax on Vehicles for the Disabled

A new regulation enacted by the Presidency has made significant changes to the Special Consumption Tax (ÖTV) exemption applied to vehicles for individuals with disabilities. According to the decision published in the Official Gazette, the local production rate for vehicles benefiting from the ÖTV exemption has been set at 40%. Additionally, the holding period for vehicles purchased under the exemption has been extended from 5 years to 10 years.

Local production rate set at 40% The decision released by the Presidency introduces a new requirement regarding the local production rate for vehicles that fall under the exemption stated in the second clause of the first paragraph of Article 7 of the Special Consumption Tax Law No. 4760. Accordingly, firms selling vehicles to disabled citizens with the ÖTV exemption must prove that their vehicles have a minimum local contribution rate of 40%.

This regulation aims to support the domestic automotive industry while also paving the way for individuals with disabilities to acquire vehicles under more favorable conditions. Companies will need to review their production processes to comply with this new regulation.

Holding period extended to 10 years Another key point of the decision is the extension of the holding period for vehicles purchased under the ÖTV exemption. Previously set at 5 years, this period has now been extended to 10 years with the new regulation.

This regulation will also allow vehicles to remain in the market for a longer period.