Tax reduction set for energy-saver appliances
The government is set to reduce special consumption taxes (ÖTV) for energy-saving refrigerators, washing machines, ovens, air conditioners and dishwashers. The tax reduction will be applied to "A plus" products, which have the highest energy efficiency, while products such as TVs, computers and mobile phones included in the brown goods category will not benefit from the tax reduction. The 6.7 percent special consumption tax levied on domestic appliances will be gradually decreased according to the energy efficiency class of the goods.
Acting on the insistence of Prime Minister Ahmet Davutoğlu to support energy-saving products, relevant ministries have begun working on the tax reduction plan. While products with high energy efficiency will be promoted, related funding models are also being prepared. The Science, Industry and Technology Ministry is currently researching whether or not the tax reduction will have an effect on the use of energy-efficient products. The discount figure will be finalized depending on the energy efficiency data compiled by the Treasury. Six years ago, the government decreased the special consumption tax of domestic appliances to 0 percent in the first three months and applied a 2 percent tax afterwards.
The government is also focusing on property tax incentives to support investors, and the Science, Industry and Technology Ministry will apply a price cap for the property tax in organized industrial zones, while free-trade zones will also benefit from the price cap. As a result, the local municipalities will not be able to charge investors taxes at their own discretion. Furthermore, a high tax reduction will be applied to income tax levied on earnings of investors acquired from various activities who have made investments this year and the next.
3 pct for electric carsAlong with increasing energy efficiency, various incentives will be provided to decrease environmental pollution as well. The opportunity to make payments in installments will be provided to the purchasers of insulation products to support heat insulation, and various supports will be offered to increase the interest in vehicles with low carbon dioxide emissions. Currently, an 18 percent VAT and 6.7 percent ÖTV is being levied on domestic goods, with a 3 percent ÖTV on electric cars. However, with the gradual ÖTV discount, these figures will decrease to 1.5 percent.
Separately, Davutoğlu announced last week that the government will cover the ÖTV of cabs, minibuses, service buses and special public buses renewed until the end of 2016, plus the costs for cameras, and GPRS equipment mounted on commercial vehicles will be deducted from the taxable income. This news is expected to revive both the transportation and the automobile sector, according to experts.
Acting on the insistence of Prime Minister Ahmet Davutoğlu to support energy-saving products, relevant ministries have begun working on the tax reduction plan. While products with high energy efficiency will be promoted, related funding models are also being prepared. The Science, Industry and Technology Ministry is currently researching whether or not the tax reduction will have an effect on the use of energy-efficient products. The discount figure will be finalized depending on the energy efficiency data compiled by the Treasury. Six years ago, the government decreased the special consumption tax of domestic appliances to 0 percent in the first three months and applied a 2 percent tax afterwards.
The government is also focusing on property tax incentives to support investors, and the Science, Industry and Technology Ministry will apply a price cap for the property tax in organized industrial zones, while free-trade zones will also benefit from the price cap. As a result, the local municipalities will not be able to charge investors taxes at their own discretion. Furthermore, a high tax reduction will be applied to income tax levied on earnings of investors acquired from various activities who have made investments this year and the next.
3 pct for electric carsAlong with increasing energy efficiency, various incentives will be provided to decrease environmental pollution as well. The opportunity to make payments in installments will be provided to the purchasers of insulation products to support heat insulation, and various supports will be offered to increase the interest in vehicles with low carbon dioxide emissions. Currently, an 18 percent VAT and 6.7 percent ÖTV is being levied on domestic goods, with a 3 percent ÖTV on electric cars. However, with the gradual ÖTV discount, these figures will decrease to 1.5 percent.
Separately, Davutoğlu announced last week that the government will cover the ÖTV of cabs, minibuses, service buses and special public buses renewed until the end of 2016, plus the costs for cameras, and GPRS equipment mounted on commercial vehicles will be deducted from the taxable income. This news is expected to revive both the transportation and the automobile sector, according to experts.
Last Update: May 18, 2015 21:15