Turkey has stepped up price thresholds for a special consumption tax on vehicles with small combustion engines while adding more categories, the Official Gazette showed on Thursday, a move that will help cut vehicle prices, Reuters reported.
A 60 percent tax rate is to be levied on vehicles with engines smaller than 1600cc in a price band of 150,001 ($11,000) lira to 175,000 lira ($12,900), after the adjustment.
The rate rises to 70 percent for vehicles that cost up to 200,000 lira and 80 percent for those priced above 200,000 lira.
Previously, all cars that cost more than 150,000 lira were subject to the 80 percent rate.
The maximum price for the tax rate of 45 percent was raised from 92,000 lira to 120,000 lira, and the threshold for the 50 percent tax rate was raised to between 120,000 and 150,000 lira.
Passenger vehicles sold in Turkey, already under a large tax burden, will see prices decrease as a result of the move, though the benefit is likely to erode quickly as sellers are expected to hike prices because of a weak lira currency.