Türkiye’s motor vehicle tax revenue nearly matches Volkswagen’s net profit

Türkiye’s Special Consumption Tax (SCT) revenue from motor vehicles nearly matched the net profit of Volkswagen Group, the largest automaker in Germany, back in 2023. In 2023, the SCT revenue from motor vehicles amounted to ₺441.2 billion (approximately $18.6 billion), according to data from the Turkish Ministry of Treasury and Finance. Volkswagen Group reported a net profit of €17.9 billion (approximately $19.5 billion) in the same year. 

In 2023, Volkswagen Group’s revenue increased by 15.5% to €322.3 billion, with prestigious brands such as Audi, Bentley, Lamborghini, and Porsche. With a turnover of $255 billion and a net profit of €17.9 billion, the company produced approximately 10 million vehicles. Oliver Blume, the CEO of Volkswagen Group, emphasized the company’s robust position for long-term transformation plans, stating, “We established a strong foundation in 2023.” 

Meanwhile, Türkiye’s SCT revenue from motor vehicles has seen a rapid increase in recent years. The SCT revenue, which was ₺167.1 billion in 2022, rose by 164% to ₺441.2 billion in 2023. In dollar terms, 2023 was a record year, with SCT revenue from motor vehicles reaching $18.6 billion. 

This striking data highlights Türkiye’s significant tax revenue from motor vehicles while also underscoring the heavy tax burden on the automotive sector. In 2023, 9.8% of every ₺100 of tax collected by the government came from the SCT on motor vehicles. This rate reached a historic high, exceeding 9.8% for the first time since 2000.