What is Special Consumption Tax?

In our daily lives, we pay Special Consumption Tax, or SCT, on many products—often without even realizing it. From gasoline to automobiles, mobile phones to alcoholic beverages, this tax covers a wide range of products and directly affects not only our budgets but also our consumption habits. So, what exactly is SCT, on which products is it applied, how is it calculated, and who is exempt from it? In this article, we explore SCT, one of the key components of the tax system.

 

SCT, or Special Consumption Tax, is an indirect tax levied once on certain goods and product groups. This tax is applied in Turkey under Law No. 4760 on Special Consumption Tax, which came into force in 2002. Its primary purpose is to increase government tax revenues, reduce the consumption of harmful products, and help balance income distribution. It applies to products considered luxurious or potentially damaging to the environment or health—such as gasoline, motor vehicles, alcoholic beverages, tobacco products, mobile phones, and cosmetics.

 

This tax is applied only during the first sale or import of a product and is not imposed on second-hand sales. The SCT rate is added to the pre-tax (net) price of the product, and VAT is then calculated on top of this total. Therefore, especially for high-value items like vehicles, SCT can significantly increase the total sales price. SCT taxpayers are typically producers, importers, or first sellers. This means that end consumers do not directly pay the tax, but it is included in the price they pay for the product.

 

 

 

In Turkey, SCT is applied based on four separate product lists:

• (I) List: Energy products such as gasoline, diesel, jet fuel, LPG, natural gas, and petroleum derivatives

• (II) List: Motor vehicles (cars, motorcycles, buses, helicopters, yachts, ships, etc.)

• (III) List: Alcoholic beverages and tobacco products (cigarettes, cigars, hookah tobacco, etc.)

• (IV) List: Cosmetics, jewelry, fur, household appliances, mobile phones, electronic devices, and luxury consumer goods

 

 

 

As of 2025, SCT rates for cars are determined by engine cylinder volume and the pre-tax (net) sales price. VAT is added at a rate of 20% after SCT is applied to the base amount.

 

• Net price up to 184,000 TL → 45% SCT

• 184,000 TL – 220,000 TL → 50% SCT

• 220,000 TL – 250,000 TL → 60% SCT

• 250,000 TL – 280,000 TL → 70% SCT

• Over 280,000 TL → 80% SCT

 

• Net price up to 170,000 TL → 130% SCT

• Over 170,000 TL → 150% SCT

 

• No net price limit → 220% SCT

 

• Up to 250 cm³ → 8% SCT

• Over 250 cm³ → 37% SCT

After SCT is applied, 20% VAT is added to the taxable base.

 

• Bus → 1% SCT

• Midibus → 4% SCT

• Minibus → 9% SCT

20% VAT is applied after SCT.

 

Rates vary depending on engine size, electric power, and base price, e.g.

• Up to 50 kW + 1800 cm³ and base price up to 228,000 TL → 45% SCT

• 228,000–350,000 TL → 50% SCT

• Over 350,000 TL → 80% SCT

 

• Up to 160 kW and base price up to 700,000 TL → 10% SCT

• Over 700,000 TL → 40% SCT

• Over 160 kW, up to 750,000 TL → 50% SCT

• Over 750,000 TL → 60% SCT

 

 

The first step in SCT calculation is determining the applicable SCT rate based on the product’s pre-tax (net) price. The general formula is:

 

SCT Amount = Net Price × SCT Rate

 

For example, if a product’s net price is 100 TL and the SCT rate is 50%:

→ SCT = 100 TL × 0.50 = 50 TL

→ Price after SCT = 100 TL + 50 TL = 150 TL

 

 

 

For vehicles, SCT is calculated based on engine size and net price. After SCT is added, 20% VAT is calculated on the total including SCT. The steps are as follows:

1. Determine the net price: The pre-tax invoice price of the vehicle

2. Identify the SCT rate: Based on engine size and price

3. Calculate the SCT amount: Net Price × SCT Rate

4. Add SCT to get subtotal: Net Price + SCT

5. Calculate VAT: (Subtotal × 20%) + Subtotal = Final sales price

 

• Net price: 200,000 TL

• Engine size: below 1600 cm³ → 184,000–220,000 TL bracket → 50% SCT

• SCT = 200,000 TL × 50% = 100,000 TL

• Subtotal = 200,000 + 100,000 = 300,000 TL

• VAT (20%) = 300,000 × 20% = 60,000 TL

• Final price = 300,000 + 60,000 = 360,000 TL

 

 

 

In Turkey, there are certain exemptions and exceptions under the Special Consumption Tax. For example, individuals with a disability rate of 90% or more can purchase vehicles with a full SCT exemption and no requirement for vehicle modification. Those with a disability rate between 40% and 89% may benefit from the exemption only if their medical report specifies that the vehicle requires special equipment. In vehicle imports, exemptions may also apply in specific cases—such as for importing specially equipped cars. Additionally, SCT exemptions are granted for purchases by diplomatic missions, military use, export purposes, and specific public institutions.

 

 

 

 

 

Sources: 1, 2.

 

This blog post contains general information, not legal, financial, or investment advice. The content is prepared for informational purposes only, and you are advised to seek professional advice for your specific circumstances. The expressions in this article do not carry any binding nature or responsibility and reflect only the author’s evaluation. All your decisions are your responsibility, and Papel Electronic Money and Payment Services Inc. accepts no liability for any consequences arising from them.