The Constitutional Court explained the reason for MTV’s additional decision

The Constitutional Court (AYM) published its reasoned decision on the rejection of the appeal requesting the annulment of the law on the collection of the Additional Tax on Motor Vehicles (MTV), which was implemented in July to compensate for the economic losses caused by the earthquakes.

In the reasoned decision published in today’s Official Gazette, the Constitutional Court, when examining the annulment application filed by CHP deputies Özgür Özel, Burcu Köksal, Gökhan Günaydın and 126 deputies, stated that the discretion of which fiscal tools will be used to eliminate the economic losses caused by the earthquake belong to the legislative body, and that by 2023 it was assessed that making arrangements to raise additional MTV for MTV met the necessity criteria.

‘VEHICLE WEALTH ELEMENT INDICATOR’

The Supreme Court opined that the rule is adequate to achieve this legitimate objective, considering that the one-time payment of the additional MTV will contribute to the provision of the necessary financing.

The Constitutional Court also noted that the vehicle owned by a person is one of the indicators of their financial power as an element of wealth, and that, given the magnitude of the financial losses due to earthquakes, there is no reasonable imbalance between the benefit to be obtained as a result of eliminating these losses and the burden that vehicle owners will bear.

The court stated that when all issues are taken into consideration, considering that the MTV is a generalized tax that covers all segments of society, it was concluded that the rule does not conflict with the principles of taxation according to financial power, fair distribution of the tax burden. and equality. (REUTERS)