Turkiye's Togg is in the lowest tax bracket

By ?uayip Alabay

For Togg, which is planned to be put up for sale this month, the SCT has been updated. With the new update, the tax base has been increased to TRY1.3m ($65,953) with an increase of TRY550,000 ($29,019) in the 10 percent slice. Turkiye's Automobile, which will not be included in the SCT with the new tax base, will be able to offer the 150 kW and 200 horsepower 2-wheel drive C-SUV model to the market at a maximum possible price of TRY1.6m ($84,420) or below.

Before the sale of Turkiye's Automobile Togg, the Special Consumption Tax (SCT) base adjustment was made. It has been increased up to TRY1.3m ($65,953) for electric cars whose engine power does not exceed 160 kW. Electric cars that meet these conditions will enter the 10 percent SCT segment. In the regulation made in July 2022, this rate was stated as the engine power not exceeding 160 kW and the tax-free price of TRY700,000 ($36,933). Thus, an update of TRY550,000 ($29,019) was realized.

Electric car incentive

With the decision, the SCT bases based on the special consumption tax rates for passenger cars with only electric motors were changed. In addition to the 10 percent slice, the tax base, which is taken as the basis for the 50 percent SCT rate for those whose engine power exceeds 160 kW, has been increased from TRY750,000 ($39,572) to try1.4m ($73,867). Thus, it was aimed to reduce the prices of cars with only electric motors that do not emit exhaust gas, and to prefer environmentally friendly vehicles suitable for green transformation.

400 HP TOGG TRY1.8M ($94,972)

If the price of Togg was in the 10th percentile, it used to be able to be purchased for a maximum of TRY908,000 ($47,908), with a minimum tax base of TRY700,000 ($36,933). With the new SCT tax regulation, if this figure remains in the TRY1.3m ($65,953) slice, the total maximum price comes to TRY1.6m ($84,420), together with 10 percent SCT and 18 percent VAT.

It is also on the agenda that Togg will be offered for sale below this price in terms of competitiveness. In the 300 kW Togg C-SUV, which exceeds 160 kW, the situation points to the 50 percent slice. The price of this vehicle, on the other hand, should not exceed the tax-free price of TRY1.4m ($73,867) with the new update and if it stays in the 50 percent SCT tax bracket, it must have a label up to a maximum of TRY1.8m ($94,972). If it exceeds TRY1.4m ($73,867), it enters the 60 percent segment.

200 HP 2-wheels model on 10 percent

According to Togg's previous statements, it will come with 2 different engine options. There will be two different C-SUV versions with 150 kW and 300 kW, one 200 hp and the other 400 hp. With 400 horsepower, the Togg will be able to reach 100 kilometers in 4.8 seconds. In addition, the 200 hp model will be able to accelerate to 100 kilometers in 7.6 seconds. Citizens will be able to choose 2 or 4-wheel drive options.

While it offers a range of 300 kilometers and more in the 150 kW package, the range will see 500 kilometers and more in the 300 kW package. Considering all these results, considering that the 150 kW package meets the conditions of the 10% SCT tax bracket, the price is expected to be TRY1.6m ($84,420) or less.

Additional 40% customs tax on brands from China

Again, with the regulation made within the same regulation, an additional 40 % customs tax will be applied for electric motor-driven vehicles imported from China. Models of many Chinese electric car brands were already on sale in Turkiye. These included MG and Skywell. Lastly, China's global giant in electric cars, BYD, signed a distributorship agreement with ALJ, which also sells Toyota and Lexus in Turkiye.