ISTANBUL – Turkey has increased the price thresholds at which special consumption tax is imposed on some vehicles, according to the country’s official gazette, a move that will boost sales.
“The annual sales could exceed our forecast of 775,000-825,000 with the amendment,” Hayri Erce, the head of the Automotive Distributors’ Association (ODD) said, adding that prices could fall in some models and brands.
According to the presidential decree the price threshold for vehicles was raised in some lower tier tax brackets. The special consumption tax rates were kept unchanged.
Shares in Turkish auto manufacturer Tofas, Ford Otosan and automotive importer and distributor Dogus Otomotiv were up at market opening while the bluechip BIST 100 index traded flat.