DIFFERENCES BETWEEN TURKEY AND EU COUNTRIES ON TAXATION POLICY FOR ELECTRIC VEHICLES

Abstract

This study aims to show the differences and consequences of tax rates applied to vehicles with electric motors between Turkey and EU countries. Clarifying the situation clearly is the most important step in solving the problem. However, it is debatable that not promoting electric vehicles is a problem. Although studies on this subject have not yet reached a definite conclusion, the EU is insistent and taking various initiatives to spread the use of renewable energy sources. The EU advocates that every investment in renewable energy will be both more profitable and more environmentally-friendly in the long run, taking into account the external costs. For this reason, it applies different measures and incentives for the transition to electric vehicles. While the EU takes measures such as carbon-based taxation of vehicles, it also applies financial and fiscal incentives during the purchase and use of electric vehicles.
 In Turkey, tax incentive practices in this regard are behind EU countries. Although a lower tax rate is levied on the purchase of electric vehicles than internal combustion engine vehicles, these taxes are observed to be higher than the EU. At the same time, post-purchase motor vehicle tax (MTV) is higher than the EU. Besides, there is no financial incentive for the purchase of electric vehicles. Comparatively, support is provided up to 5,000 € in the purchase of electric vehicles in EU countries, although it varies from country to country. Due to these reasons, as a result of the study, it is seen that the rate of electric cars among the cars registered for the first time in Turkey is 0.3%, while this rate is 10% in EU countries.