Government keeps watch on car prices after implementation of new tax rates

The Trade Ministry in Turkey has initiated an investigation into car prices following changes in the Special Consumption Tax (SCT) rates on motor vehicles. The ministry’s primary goal is to prevent any market manipulation and protect consumers by ensuring a fair and competitive market environment.

With the recent update in SCT rates, authorities are closely monitoring pricing behavior, unauthorized sales, and any activities that could disrupt market dynamics. Those found guilty of violations will face fines and penalties to maintain the integrity of the market. An approximate total of 103 million Turkish Liras in fines was imposed on 220 individuals and entities operating without proper licenses. Additionally, 31 authorized dealerships had their licenses revoked for impeding consumer access through practices like coercing accessory purchases and inflating prices.

To enhance consumer protection and prevent fraud, the ministry has collaborated with the Turkish Notaries Union to implement a secure payment system. This system ensures safe and simultaneous transactions between buyers and sellers, aiming to eliminate fraudulent activities in the automotive sector. Consumers are encouraged to report any unauthorized vehicle sales through a dedicated module on the e-Devlet platform, the Turkish e-government gateway, in efforts to increase transparency and accountability.

Furthermore, the Electronic Ad Verification System (EİDS) now mandates identity verification for all vehicle listings. This requirement limits ad postings to verified owners or licensed dealers, reducing the risk of fraudulent listings and providing consumers with peace of mind when purchasing vehicles. By enforcing stricter regulations and implementing secure payment systems, the ministry aims to create a safer and more transparent automotive market for all stakeholders involved.