When this number is added, the tax collection level rises to 2 quadrillion 235 trillion TL. This means a 100% increase in the Vehicle Tax.
The tax bombardment in automobiles began with the Motor Vehicle Taxes, which were increased by 59% as from February 1, 2003. Following this, the government brought about the Extra Motor Vehicle Taxes, which corresponded to approximately the same amount with the original Motor Vehicle Tax. The Constitutional Court cancelled this tax, 410 trillion TL of which had already been collected, in July 2003.
Upon the cancellation, the same tax was introduced once again, but with a wider scope and different name; the Vehicle Tax. Most of the citizens did not pay this tax, therefore only 190 out of remaining 700 trillion TL was collected. At the beginning of October, the Constitutional Court cancelled this tax as well.
Subsequently the Special Consumption Tax (OTV) on automobiles was increased as high as 50%. Meanwhile, the government did not repay the total of 600 trillion TL, which was collected through previously issued unconstitutional taxes. It announced that these amounts would be reduced from the tax, that these citizens would pay in January 2004. However no interest rate will be counted on this 600 trillion in a way to benefit those, who paid their extra taxes.
What Is New Surprise?
The 2004 Budgets shows an item of Motor Vehicle Tax Collection, which bears 1 quadrillion 635 trillion TL. However, this collection figure shows the amount, which remains when the 600 trillion TL extra taxes, which was unconstitutionally collected, was subtracted. When we add up the two it makes 2 quadrillion 235 trillion TL. 2003 normal Motor Vehicle Tax was 1 quadrillion 100 trillion TL. This mathematically means that there is a planned 100% increase in the Motor Vehicle Taxes.
Is not it a bit unfair to impose 100% tax when inflation is expected to be at a level of 12% in 2004? In fact while expecting “smooth” falls in the tax rate, citizens faced a “sharp” increase.