Turkey imposes tax on yachts

Turkey has slapped an 8% special consumption tax on yachts, motorboats and other pleasure craft, ending a zero-rate exemption that had applied to luxury vessels.

The levy takes effect immediately. It also covers small cruise ships and passenger vessels not intended for sea navigation.

Although designed for luxury or non-essential items, Turkey’s special consumption tax has long been applied to everyday goods like cars and mobile phones, making it a major revenue source.

The move is part of Turkey’s broader push to increase tax revenues to help narrow the country’s budget gap.

Turkey’s budget deficit target is 3.1% for 2025.