TESK President Palandöken Calls for Tax Exemption for Commercial Vehicles

Ankara - Bendevi Palandöken, President of the Confederation of Turkish Tradesmen and Craftsmen (TESK), reacted to the new regulations planned to be made in the Special Consumption Tax (SCT) base rates of Motor Vehicles. Palandöken argued that commercial vehicles should be exempted from these tax increases and even their current taxes should be reset for once. "With the new regulation, SCT base rates for motor vehicles are being changed. The tax increase decision may be important in terms of discipline, but commercial vehicles should be excluded from this scope."

"Commercial Vehicles are Bread and Butter, Tax Increase Will Put Tradesmen in a Deadlock"

Stating that commercial vehicles are the "bread and butter" of tradesmen unlike vehicles in private use, Palandöken emphasized that it is vital that especially taxi, minibus, minibus and shuttle owners are exempted from the new SCT-VAT regulation. Drawing attention to the age limits applied in big cities, Palandöken reminded that there is an age limit of 10 for taxis in Istanbul, 15 in Izmir, and 12 for school buses by the Ministry of National Education (MEB).

Palandöken stated that despite this obligation, increasing taxes such as SCT and VAT at a time when vehicle prices have already reached inaccessible levels will seriously victimize the tradesmen: "Tradesmen see their vehicles not only as a means of transportation but also as a workplace where they earn their bread. Therefore, making the need for vehicle renewal more difficult with high costs may trigger a chain crisis in this segment that may lead to both loss of income and layoffs."

"Replacing Commercial Vehicles Will Improve Public Transportation"

Reminding that the last SCT discount for commercial vehicles was made in 2016, TESK President stated that even the vehicles purchased at that time are now due for renewal. Palandöken said that it will become impossible for many tradesmen to buy new vehicles with current prices and possible tax increases, and emphasized that exempting commercial vehicles from tax is of great importance for both social justice and economic sustainability.

Palandöken stated that the renewal of commercial vehicles will not only provide relief to the tradesmen, but also increase the quality of service in public transportation: "The renewal of commercial vehicles offers a safer, more comfortable and environmentally friendly transportation for passengers. Fuel consumption is reduced, which means both a reduction in operating costs and a contribution to the environment. The risk of accidents is reduced because older vehicles are more likely to have accidents."

Palandöken's statements include a call for a review of tax policies to ease the economic burden of commercial vehicle owners, increase the quality of public transportation services and provide environmental benefits.