A bill drafted by the government has set a fixed rate of 37 percent for the private consumption tax (ÖTV) on electric-powered and hybrid private vehicles -- sedans, hatchbacks, station wagons, racecars, sport utility vehicles and motor homes -- irrespective of engine volume.
Electric-powered vehicles for commercial use -- buses, minibuses and all other vehicles with a gross weight of 3.5 tons or less -- will have an ÖTV rate of 10 percent regardless of engine volume.
The ÖTV rate on gasoline and diesel-powered vehicles is determined according to engine volume, with rates varying from 37 percent for engines up to 1600 cc to 84 percent for vehicles having an engine measuring 2000 cc or more.
Work on the Motor Vehicle Tax (MTV), however, for electric-powered and hybrid vehicles has not yet been finished. Vehicle authority officials said they do not yet have clear information on the MTV rate or if it will be included in the bill for ÖTV on electric-powered and hybrid vehicles. They added that if new MTV charges are not included in the ÖTV legislation, a separate MTV bill would be proposed. The officials noted they expect the MTV on electric-powered and hybrid vehicles to be TL 405 on a yearly basis irrespective of engine size.
Separately, Industry and Trade Minister Nihat Ergün said regulations on the production and modification of electric-powered and hybrid vehicles had been completed and sent to the Prime Ministry for approval the previous Sunday. He also added that production of these vehicles is expected to start by the end of this year and that there will be tax incentives provided for users of these vehicles.
