The effects of tax incentive practices on automotive sector: A research in Düzce province

The main purpose of this study is to examine how effective the tax incentives applied to automotive sector, the locomotive sector of our country is. By analyzing the definition of the automotive sector, the history, the overall economic situation of the automotive industry in the world stage that had so far in the automotive sector, the current structure of the automotive sector in Turkey has been put forward. With the employment capacity and new job opportunities, besides the main automotive industry, many automotive subsidiary industries sectors commence their operations and it makes significant contributions to the state economy. In this context, the tax incentives for the automotive sector were investigated and evaluated. The scope of the study nine firms, having the 77.7% share in respect to the sales rate in the sector, were included. Qualitative research method was used in the study. The data of the research was obtained from the sales representatives and managers of the enterprises by using semi-structured interview technique. Descriptive analysis was used in the analysis of the obtained data. The results obtained from the interviews were evaluated under four titles; economic, tax, profitability and incentives. In the result of the study, it was found that tax incentives were beneficial for the sector whose sales figures decreased by more than 50% due to the economic situation of the country and various other factors but were not sufficient by itself.