What happens if MTV Adicional is cancelled? Will there be a refund?

The first payment period for the additional Motor Vehicle Tax (MTV), which was introduced to cover financing needs to heal the wounds of the earthquake, recently concluded. CHP had taken additional regulation of MTV to court. In the first delivery period of MTV Additional, 87 percent of the planned collection of approximately 13.2 billion lire was realized.

ADDITIONAL HAS MTV BEEN CANCELED?

The Revenue Administration (GİB) made a statement: “No decision has yet been made in the case filed with the Constitutional Court regarding additional MTV.”

The Constitutional Court will discuss and decide on the request on September 28.

WILL PAYMENTS BE REFUNDED IF EK MTV IS CANCELED?

If the Constitutional Court decides to overturn, MTV’s additional payments will only be refunded if a lawsuit is filed before September 7, and those who do not file a lawsuit will not be refunded.

RIGHT OF REFUND TO THE LITIGANT CLAIM

If the Constitutional Court decides to annul it and postpones execution until September 7, the additional MTV will be completely abolished and those who paid will be able to recover their money. However, only those who filed a claim will be entitled to a refund. After a possible annulment decision, if the government passes a new law and gives everyone the opportunity to receive a refund, the refund will cover everyone.

WHAT HAPPENED?

It was requested to cancel and suspend the application of some articles of Law No. 7456 on the Establishment of Additional Tax on Motor Vehicles to Compensate for Economic Losses Caused by the Earthquakes that Occurred on February 6, 2023, and on Modifications to Certain Laws and the Decree Law No. 375.

In its agenda session on July 26, 2023, the Constitutional Court conducted the first review of the application and resolved that the application for suspension of execution would be resolved at the main review stage. (AA)