Turkey aims to collect contribution to defence industry from credit cards

According to a new bill, Turkey is aiming to collect 750 liras contributions to the country's defence industry fund from credit cards with a limit of 100,000 liras ($2,914) and above.

Saturday October 12 2024 11:31 pm

Reuters & Duvar English

Turkey's ruling Justice and Development Party (AKP) submitted a bill on Oct. 11 that would raise $2 billion annually for the country's defence industry fund, Abdullah Güler, chair of the party's parliamentary group said.

The bill also contains new measures to support investment.

Güler said the bill should raise 70-80 billion lira ($2 billion-$2.3 billion) annually for the defence industry fund, which is used to support and develop the sector. The fund had revenues of 135 billion lira last year, according to the Court of Accounts.

Companies and individuals would make additional contributions to the fund based on their tax statements and credit card limits, under the proposal.

The bill is aiming to collect 750 liras contributions from credit cards with a limit of 100,000 liras ($2,914) and above.

The citizens would also pay a contribution when buying or selling real estate or cars, and when making other transactions that require notary approval.

The draft bill proposes the tax impact of the inflation adjustment for ongoing investments be delayed to increase predictability.

The bill would also charge a special consumption tax on non-military drones and on watches that cost more than 5,000 lira.

Motorcycles with less than 100 cc and 6KW engine capacity would also be charged a motored vehicle tax under the bill.