Turkey’s government increased taxes on electric cars by as much as four-fold.
A special consumption tax on cars with electric motors producing more than 120 kilowatts of power will be raised to 60 percent from 15 percent, according to a presidential decree published in the Official Gazette on Tuesday. No reason was given for the decision.
The charge on vehicles with motors of less than 85 kilowatts will be increased to 10 percent from 3 percent, it said. The tax on vehicles with engines producing between 85 kilowatts and 120 kilowatts will be raised to 25 percent from 7 percent.
Turkey typically increases special consumption taxes on consumer goods to ensure revenue in the budget keeps pace with inflation and to raise additional income. Consumer price inflation in the country stands at 14.6 percent.