Tax Size of Change in Vehicle Fuel Technologies: A Review for Türkiye

Abstract

In accordance with the additional article brought to the Motor Vehicles Tax Law with the 21st article of the Law No. 7103 enacted in 2018 in our country, electric vehicles pay tax as much as one fourth of the vehicles with equivalent power. With the introduction of new technologies into our lives, the use of electricity instead of gasoline and diesel used in vehicles will cause a decrease in Motor Vehicle Tax revenues. In addition, since the widespread use of electric vehicles will reduce the gasoline and diesel consumption of vehicles, it will lead to a decrease in the Special Consumption Tax and Value Added Tax revenues levied on these fuels. Tax revenues will also decrease in proportion to the speed of the adaptation process to technological change. In the study, tax losses caused by the developments in vehicle fuel technologies were examined. Income losses in the future due to technological changes should be taken into account and new revenue sources should be created.