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by rth 2366 days ago
Depends!

Might work for some countries (like banana republic) but I do not think it would be valid case for Turkey. It is not about assembling/disassembling or where the factory is. Toyota, Renault, Honda, Isuzu, Hundai, Ford already producing (yes factories planted) in Turkey but consumers pay custom tax.

They can drop "income tax" for TOGG manufacturer, while others pay income tax.

Like, Amazon, Google does not pay their taxes fully while many others pay.

We are not talking about VAT or custom, it is income tax that government takes some percentage from the profit of the TOGG. Then, TOGG can sell their cars cheaper even though there is Tax and VAT.

If they really want to make price advantage for TOGG, they will find a way to achieve their goal.

1 comments

They can make a price advantage for TOGG, but if they do it via taxes, tariffs or subsidies, they will cripple all the other manufacturing in the country.

Because car industries are expecting a downturn in the coming years, this would be a strong indicator to international manufacturers for deciding where to cut production.

They are already closing their factories (or reducing capacity) in many countries. I know Honda will close by 2021 in England and Turkey.

May be, Turkish government preparing for this.

"What if they close their factories one day" is the question in their mind?

Whatever the case is, it is a good news for everybody. I believe every country must build their own technology to compete others.