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Circular
Circular No. : 040* Istanbul, April 03, 2006
Subject : Some amendments have been made in Special Consumption Tax application with the Law No. 5479
With four articles of the Law No. 5479, which was accepted in the Plenary Committee of the Turkish Parliament last week and which is still expected to be approved by the President, some amendments have been made in the Special Consumption Tax Code (SCTC). With the first one of these four articles, paragraph (2) of Article 1 of the SCTC has been amended and it has been stipulated that the taxables goods are the goods defined in the Turkish Customs Tariff Table and that the amendments to be made on the tariff numbers or descriptions of these goods apart from the lists attached to this Law shall not be effective for the implementation of the SCTC.
With another article of the Law, while biodiesel is added to the goods in the list numbered (I) attached to the SCTC and special consumption tax of TRY 0,6498 is levied per liter, with paragraph added at the end of Article 3 of the Law, in case of the goods in the List No. (I) attached to the Law, which are seized pursuant to the Law on Combatting Smuggling or are liquidated pursuant to the Customs Law, the ones which are not in compliance with the obligatory standards determined by the Energy Market Regulatory Authority are delivered to refineries, it is decided that the taxable event happens in the delivery of these goods to the refineries and that the taxpayers are those making the delivery.
With another article of the Law, which is related with special consumption tax application, amendments have been made in Article 11 of the Law, concerning the taxation procedures and principles.
With the last article of the Law No. 5479, concerning the application of Special Consumption Tax, while the goods in the Lists No. (III) and (IV) attached to the SCTC, are determined again as indicated in the table attached to our Circular; the 8% rate of the special consumption tax levied on the goods having a Customs Tarif Statistical Number (GTIP) 87.11 (motorcycles, motor scooters, wheeled vehicles having a supplementary engine) in the list no (II), has been determined again as 22% and 37%. Through the amendment made with the same provision in Article 12 of the SCTC where the authority granted to the Council of Ministers about the determination of the tax rates and amounts is explained, the limit of the authority of the Council of Ministers regarding the determination of the goods in the List No. (III) has been redetermined.
Please contact us if you require additional information for the above subject.
Best regards,
KUZEY YEMİNLİ MALİ MÜŞAVİRLİK A.Ş.
* This text is the summary of the Circular, No. 40, dated April 03, 2006, published by our firm. You may find the Turkish original full text of the circular in the Turkish section of our website, www.vergidegundem.com or you may request detailed information via our contact numbers (Istanbul; 0090 212.3153000 – ext. no. 5256 – Ankara; 0090.312.4472111 – ext. no. 115).