Bloomberg News

Turkish Carmakers to Be Hit by Tax Increase, Ekspres Invest Says

October 13, 2011

Oct. 13 (Bloomberg) -- Turkish automakers including Dogus Otomotiv Servis & Ticaret AS, Ford Otomotiv Sanayi AS and Tofas Turk Otomobil Fabrikasi AS will be hurt by an increase in special consumption taxes on vehicles announced today, Ekspres Invest said.

“Dogus Otomotiv will be hardest hit from the special consumption tax as it’s a pure domestic play,” the Istanbul- based brokerage said in a report sent to clients. “Ford Otosan and Tofas will also be negatively affected.”

The government announced it was increasing the tax to 80- to-130 percent for vehicles with engines larger than 1.6 liters, up from 10-to-84 percent. New taxes for cigarettes, mobile phones and alcoholic drinks were also announced in a directive published in today’s Official Gazette in Ankara.

--Editor: Andrew J. Barden

-0- Oct/13/2011 06:55 GMT

-0- Oct/13/2011 06:59 GMT

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net -0- Oct/13/2011 06:51 GMT


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