A bill for VAT-free car sales to retirees has been submitted to the Turkish Parliament! If this proposal, which includes Bağ-Kur tradesmen retirees, becomes law, which cars will become cheaper and by how much? Explore hidden costs and all the details.
Buying a brand-new car in Turkey has long turned into a massive luxury investment rather than fulfilling a transportation need due to the layered tax system (first VAT, then VAT on VAT). However, recently, a new, promising development that excites millions of citizens and has become a main headline in news bulletins and a storm on social media has occurred: VAT-free (Special Consumption Tax exempt) car sales to retirees! Sounds like a fantastic opportunity, doesn't it? "I served this country for years, ran a shop, paid my taxes, now in my retirement years, I deserve to travel comfortably with my grandchildren in an affordable new car," say millions of tradesmen and craftsmen whose eyes and ears are currently on the Turkish Grand National Assembly (TBMM). So, what exactly is behind this much-talked-about, word-of-mouth proposal? Does it really cover all retirees? What are the conditions? Even if the law passes, how will the other "hidden" costs of owning a car affect your budget? In this comprehensive guide, we delve into the finest details of this bill submitted to the parliament, the financial advantages in popular SUV and Sedan models, the realities of the legislative process, and the most prudent ways to protect your capital.
Below, we will examine all the mathematical details and discount rates of this exciting bill proposal, but first, we need to emphasize a very important, painful truth: This is not yet a law; it is a bill proposal submitted by an opposition member of parliament. Considering Turkey's legislative processes, it can take months or even years for a proposal to pass through parliamentary committees, be approved in the general assembly, and be found suitable for the Treasury's budget balances (tax revenue targets). Often, such proposals are left pending in committees for a long time or are rejected.
For tradesmen continuing their commercial life or business owners seeking freedom of movement, postponing their vehicle needs by thinking "Will the law pass, how much will vehicle prices increase by then?" can cause significant harm to commercial operations and quality of life. On the other hand, tying up your accumulated capital (cash) in a vehicle with high taxes today creates a significant opportunity cost. In this uncertainty and inflationary environment, the LenaCars Long-Term Vehicle Rental model is the perfect refuge. Visionary tradesmen who have run shops and engaged in commerce for years know well that cash is king in trade. Instead of tying up your capital in iron or being left without a vehicle while waiting for uncertain laws, you can immediately hit the road by renting a vehicle from LenaCars for your company or personal use. Moreover, you do not bear any risks such as insurance, MTV, periodic maintenance, tire changes, and second-hand depreciation. By showing all your monthly rental invoices as expenses from your company, you gain a 100% legal tax advantage, and you can grow your capital by investing it in gold, foreign currency, or your own business.
This topic currently occupying Turkey's agenda is a Bill Proposal prepared by CHP Tokat MP Kadim Durmaz and officially submitted to the Turkish Grand National Assembly (TBMM). The rationale of the proposal emphasizes that retired tradesmen, who are among the groups most affected by economic fluctuations, should have their welfare levels increased and their transportation needs facilitated in the autumn of their lives.
The most critical distinction here is this: The proposal does not include all SSK (4/A) members, civil servant retirees (Pension Fund - 4/C), or those who retired at a young age under EYT. The focus of the proposal is a much more specific group that has kept the wheels of the economy turning for years: Bağ-Kur (4/B) Retirees. Our tradesmen and craftsmen, who have stood at the helm of their own business for years, opened their shutters at the crack of dawn and closed their shops at midnight, paid their premiums out of their own pockets, and provided employment by employing workers. The prepared draft law is a kind of "state's thank you" to this group.
Let's say everything went well, the Ministry of Treasury and Finance made room in the budget, and this proposal passed through the Parliament and became law. Can we immediately go to the dealership, get the keys, and sell it the next day with a profit? Absolutely not. The bill proposal contains very clear and uncompromising conditions to prevent "opportunism and black market" in the Turkish car market, which is a bleeding wound:
Now that we understand the rules and legal framework, let's get to the exciting part: Numbers! In Turkey's tax system, VAT rates range from 45% to 80% depending on the engine capacity (cc) and base price of the vehicle. Interestingly, when calculating the 20% VAT, the state adds VAT to the vehicle's tax-free price first, then takes VAT on this inflated total. (In other words, tax on tax is taken). When VAT exemption comes, the VAT base will also decrease, creating a double discount effect.
Here is the estimated VAT-free price and savings table for popular vehicles in different segments according to 2026 market averages:
| Vehicle Segment and Popular Model Example | Estimated List Price | Estimated VAT-Free Price & Savings |
|---|---|---|
| C-Segment Sedan (e.g., Renault Megane) | ~1,200,000 TL | ~880,000 TL (320,000 TL Savings) |
| B-SUV Class (e.g., Peugeot 2008 / Duster) | ~1,450,000 TL | ~1,050,000 TL (400,000 TL Savings) |
| Domestic Production EV (e.g., Togg T10X)* | ~1,500,000 TL | Electric VAT (%10) is deducted. |
| C-SUV Class (e.g., Chery Tiggo 7) | ~1,600,000 TL | ~1,150,000 TL (450,000 TL Savings) |
| B-Segment Hatchback (e.g., Renault Clio) | ~950,000 TL | ~690,000 TL (260,000 TL Savings) |
*Since the state already keeps the VAT at 10% as an environmental incentive for electric vehicles like Togg, the discount brought by the exemption will be much lower compared to gasoline/diesel vehicles. Savings amounts may vary depending on market prices and exchange rate fluctuations.
To better understand the scope of this proposal, it is best to compare it with the "90% and above Disability VAT Exemption" that has been implemented in Turkey for years and benefited by hundreds of thousands of citizens. Although both systems provide tax relief, there are significant differences in their target audiences and rules:
In summary, this proposal for tradesmen is designed as a much narrower, specific, and one-time opportunity to avoid creating a massive gap in the state's tax revenues.
Let's say the law passed, you went and bought a 1.5 Million TL car for 1 Million TL. You're in profit now, right? According to cost analysis experts, this is a big misconception. Not paying VAT does not mean the car will serve you "for free." The heavy and inevitable costs of ownership (Total Cost of Ownership) will knock on your door the next day:
That's why, instead of getting into this expense wheel just because there is a VAT discount, the "Fleet Rental" model, where all these operational, tax, and maintenance costs are tied to a fixed monthly invoice, is a much more peaceful and economical solution for the business world and individuals.
When we examine the archives, we see that this is not the first proposal submitted to the parliament regarding VAT reduction or exemption in the automotive sector. Previously, many popular proposals such as VAT reduction on young people's first cars and VAT exemption on commercial vehicles for farmers have come to the parliament. However, the political realities are as follows: Such bill proposals, which are submitted by opposition parties and will cut one of the Treasury's largest tax items, VAT, are generally not accepted directly.
Sometimes these proposals are rejected, and sometimes they can be added as a much narrower, more stringent condition in a "Bag Law" prepared by the government months later. As a result, continuing your trade or meeting your urgent transportation needs with the strategy of "Let's wait, maybe VAT will be removed in 6 months" can put you at a much greater loss with the exchange rate increases that will come to vehicle prices within those 6 months. Time is money, and investment is not made in uncertainty.
For this excellent news to become reality, it must go through a very challenging marathon in the parliament. The stages of enacting a law in Turkey are as follows:
The current bill proposal submitted to the TBMM explicitly states "tradesmen and craftsmen retired from the Bağ-Kur system." Therefore, according to the current draft, SSK or civil servant retirees are not included in this scope. However, whether the scope will be expanded for justice reasons during committee discussions is entirely at the discretion of the parliament.
In disability vehicle purchases, who can use the vehicle is strictly limited by the Highway Traffic Regulation (1st-degree relatives, etc.). Although there is no clear detail on usage restrictions in this new proposal for retirees in the draft, it is highly likely that a similar "only the license holder or 1st-degree relatives can use it" restriction will be imposed if it becomes law.
No. According to Turkey's tax legislation, VAT (Special Consumption Tax) is only paid at the "first registration" stage, i.e., when brand-new vehicles leave the factory or customs and are licensed for the first time. There is no VAT in second-hand vehicle sales; only notary transfer fees and, if the vehicle is sold by a corporate company, VAT is present. Therefore, the exemption only covers "brand-new" dealership vehicles.
In all tax exemptions provided by the state, upper limits are imposed to prevent luxury consumption. The details of the proposal are expected to include that the engine capacity of the vehicles should not exceed 1600 cc (the kW limit for electric vehicles) and that they should remain below a "maximum sales price" ceiling determined annually with the revaluation rate, similar to the disability exemption.
Don't postpone your business and transportation freedom by waiting for months of discussions and political processes in the corridors of the parliament. Also, don't tie up your cash in high-tax vehicle purchases, bearing hidden risks like insurance, MTV, heavy maintenance bills, and second-hand depreciation. By renting long-term from LenaCars' well-maintained, insured, and popular models in Turkey's wide vehicle fleet, keep your capital in your pocket (or business). Start benefiting from legal tax advantages today by showing your rental invoices as expenses from your company without waiting.
Explore Our Advantageous Rental Fleet → 📞 Consult a Rental Expert10 dk
7 dk
12 dk
A bill for VAT-free car sales to retirees has been submitted to the Turkish Parliament! If this proposal, which includes Bağ-Kur tradesmen retirees, becomes law, which cars will become cheaper and by how much? Explore hidden costs and all the details.
Buying a brand-new car in Turkey has long turned into a massive luxury investment rather than fulfilling a transportation need due to the layered tax system (first VAT, then VAT on VAT). However, recently, a new, promising development that excites millions of citizens and has become a main headline in news bulletins and a storm on social media has occurred: VAT-free (Special Consumption Tax exempt) car sales to retirees! Sounds like a fantastic opportunity, doesn't it? "I served this country for years, ran a shop, paid my taxes, now in my retirement years, I deserve to travel comfortably with my grandchildren in an affordable new car," say millions of tradesmen and craftsmen whose eyes and ears are currently on the Turkish Grand National Assembly (TBMM). So, what exactly is behind this much-talked-about, word-of-mouth proposal? Does it really cover all retirees? What are the conditions? Even if the law passes, how will the other "hidden" costs of owning a car affect your budget? In this comprehensive guide, we delve into the finest details of this bill submitted to the parliament, the financial advantages in popular SUV and Sedan models, the realities of the legislative process, and the most prudent ways to protect your capital.
Below, we will examine all the mathematical details and discount rates of this exciting bill proposal, but first, we need to emphasize a very important, painful truth: This is not yet a law; it is a bill proposal submitted by an opposition member of parliament. Considering Turkey's legislative processes, it can take months or even years for a proposal to pass through parliamentary committees, be approved in the general assembly, and be found suitable for the Treasury's budget balances (tax revenue targets). Often, such proposals are left pending in committees for a long time or are rejected.
For tradesmen continuing their commercial life or business owners seeking freedom of movement, postponing their vehicle needs by thinking "Will the law pass, how much will vehicle prices increase by then?" can cause significant harm to commercial operations and quality of life. On the other hand, tying up your accumulated capital (cash) in a vehicle with high taxes today creates a significant opportunity cost. In this uncertainty and inflationary environment, the LenaCars Long-Term Vehicle Rental model is the perfect refuge. Visionary tradesmen who have run shops and engaged in commerce for years know well that cash is king in trade. Instead of tying up your capital in iron or being left without a vehicle while waiting for uncertain laws, you can immediately hit the road by renting a vehicle from LenaCars for your company or personal use. Moreover, you do not bear any risks such as insurance, MTV, periodic maintenance, tire changes, and second-hand depreciation. By showing all your monthly rental invoices as expenses from your company, you gain a 100% legal tax advantage, and you can grow your capital by investing it in gold, foreign currency, or your own business.
This topic currently occupying Turkey's agenda is a Bill Proposal prepared by CHP Tokat MP Kadim Durmaz and officially submitted to the Turkish Grand National Assembly (TBMM). The rationale of the proposal emphasizes that retired tradesmen, who are among the groups most affected by economic fluctuations, should have their welfare levels increased and their transportation needs facilitated in the autumn of their lives.
The most critical distinction here is this: The proposal does not include all SSK (4/A) members, civil servant retirees (Pension Fund - 4/C), or those who retired at a young age under EYT. The focus of the proposal is a much more specific group that has kept the wheels of the economy turning for years: Bağ-Kur (4/B) Retirees. Our tradesmen and craftsmen, who have stood at the helm of their own business for years, opened their shutters at the crack of dawn and closed their shops at midnight, paid their premiums out of their own pockets, and provided employment by employing workers. The prepared draft law is a kind of "state's thank you" to this group.
Let's say everything went well, the Ministry of Treasury and Finance made room in the budget, and this proposal passed through the Parliament and became law. Can we immediately go to the dealership, get the keys, and sell it the next day with a profit? Absolutely not. The bill proposal contains very clear and uncompromising conditions to prevent "opportunism and black market" in the Turkish car market, which is a bleeding wound:
Now that we understand the rules and legal framework, let's get to the exciting part: Numbers! In Turkey's tax system, VAT rates range from 45% to 80% depending on the engine capacity (cc) and base price of the vehicle. Interestingly, when calculating the 20% VAT, the state adds VAT to the vehicle's tax-free price first, then takes VAT on this inflated total. (In other words, tax on tax is taken). When VAT exemption comes, the VAT base will also decrease, creating a double discount effect.
Here is the estimated VAT-free price and savings table for popular vehicles in different segments according to 2026 market averages:
| Vehicle Segment and Popular Model Example | Estimated List Price | Estimated VAT-Free Price & Savings |
|---|---|---|
| C-Segment Sedan (e.g., Renault Megane) | ~1,200,000 TL | ~880,000 TL (320,000 TL Savings) |
| B-SUV Class (e.g., Peugeot 2008 / Duster) | ~1,450,000 TL | ~1,050,000 TL (400,000 TL Savings) |
| Domestic Production EV (e.g., Togg T10X)* | ~1,500,000 TL | Electric VAT (%10) is deducted. |
| C-SUV Class (e.g., Chery Tiggo 7) | ~1,600,000 TL | ~1,150,000 TL (450,000 TL Savings) |
| B-Segment Hatchback (e.g., Renault Clio) | ~950,000 TL | ~690,000 TL (260,000 TL Savings) |
*Since the state already keeps the VAT at 10% as an environmental incentive for electric vehicles like Togg, the discount brought by the exemption will be much lower compared to gasoline/diesel vehicles. Savings amounts may vary depending on market prices and exchange rate fluctuations.
To better understand the scope of this proposal, it is best to compare it with the "90% and above Disability VAT Exemption" that has been implemented in Turkey for years and benefited by hundreds of thousands of citizens. Although both systems provide tax relief, there are significant differences in their target audiences and rules:
In summary, this proposal for tradesmen is designed as a much narrower, specific, and one-time opportunity to avoid creating a massive gap in the state's tax revenues.
Let's say the law passed, you went and bought a 1.5 Million TL car for 1 Million TL. You're in profit now, right? According to cost analysis experts, this is a big misconception. Not paying VAT does not mean the car will serve you "for free." The heavy and inevitable costs of ownership (Total Cost of Ownership) will knock on your door the next day:
That's why, instead of getting into this expense wheel just because there is a VAT discount, the "Fleet Rental" model, where all these operational, tax, and maintenance costs are tied to a fixed monthly invoice, is a much more peaceful and economical solution for the business world and individuals.
When we examine the archives, we see that this is not the first proposal submitted to the parliament regarding VAT reduction or exemption in the automotive sector. Previously, many popular proposals such as VAT reduction on young people's first cars and VAT exemption on commercial vehicles for farmers have come to the parliament. However, the political realities are as follows: Such bill proposals, which are submitted by opposition parties and will cut one of the Treasury's largest tax items, VAT, are generally not accepted directly.
Sometimes these proposals are rejected, and sometimes they can be added as a much narrower, more stringent condition in a "Bag Law" prepared by the government months later. As a result, continuing your trade or meeting your urgent transportation needs with the strategy of "Let's wait, maybe VAT will be removed in 6 months" can put you at a much greater loss with the exchange rate increases that will come to vehicle prices within those 6 months. Time is money, and investment is not made in uncertainty.
For this excellent news to become reality, it must go through a very challenging marathon in the parliament. The stages of enacting a law in Turkey are as follows:
The current bill proposal submitted to the TBMM explicitly states "tradesmen and craftsmen retired from the Bağ-Kur system." Therefore, according to the current draft, SSK or civil servant retirees are not included in this scope. However, whether the scope will be expanded for justice reasons during committee discussions is entirely at the discretion of the parliament.
In disability vehicle purchases, who can use the vehicle is strictly limited by the Highway Traffic Regulation (1st-degree relatives, etc.). Although there is no clear detail on usage restrictions in this new proposal for retirees in the draft, it is highly likely that a similar "only the license holder or 1st-degree relatives can use it" restriction will be imposed if it becomes law.
No. According to Turkey's tax legislation, VAT (Special Consumption Tax) is only paid at the "first registration" stage, i.e., when brand-new vehicles leave the factory or customs and are licensed for the first time. There is no VAT in second-hand vehicle sales; only notary transfer fees and, if the vehicle is sold by a corporate company, VAT is present. Therefore, the exemption only covers "brand-new" dealership vehicles.
In all tax exemptions provided by the state, upper limits are imposed to prevent luxury consumption. The details of the proposal are expected to include that the engine capacity of the vehicles should not exceed 1600 cc (the kW limit for electric vehicles) and that they should remain below a "maximum sales price" ceiling determined annually with the revaluation rate, similar to the disability exemption.
Don't postpone your business and transportation freedom by waiting for months of discussions and political processes in the corridors of the parliament. Also, don't tie up your cash in high-tax vehicle purchases, bearing hidden risks like insurance, MTV, heavy maintenance bills, and second-hand depreciation. By renting long-term from LenaCars' well-maintained, insured, and popular models in Turkey's wide vehicle fleet, keep your capital in your pocket (or business). Start benefiting from legal tax advantages today by showing your rental invoices as expenses from your company without waiting.
Explore Our Advantageous Rental Fleet → 📞 Consult a Rental Expert10 dk
7 dk
12 dk
Ücretsiz filo analizi ile tasarruf fırsatlarını keşfedin.
Türkiye'nin en geniş araç filosu ile güvenli ve konforlu yolculuklar.
Ücretsiz filo analizi ile tasarruf fırsatlarını keşfedin.
Türkiye'nin en geniş araç filosu ile güvenli ve konforlu yolculuklar.