The Turkish government has defended aproposed credit card tax aimed at funding the defense industry as conflicts escalate in the Middle East. The ruling AKP party introduced the bill to parliament, citing the need for enhanced military deterrence as tensions rise with Israel, Gaza, Lebanon, and Iran.
Finance Minister Mehmet Simsek, addressing concerns, stated, “Our country must strengthen its deterrence due to the current regional instability.” The proposed legislation would impose an annual tax of 750 lira ($22) on individuals with credit card limits exceeding 100,000 lira (approximately $3,000), starting in January 2024.
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The government argues that the tax is essential to protect Turkey from potential threats, as President Recep Tayyip Erdogan and AKP leaders warn that Turkey could become a target in the ongoing conflict. AKP’s parliamentary group chairman, Abdullah Guler, echoed these concerns, emphasizing the importance of boosting the defense industry.
Opposition parties have criticized the bill, accusing the government of using national security concerns to distract from Turkey’s economic struggles, particularly as inflation remains high.
Despite the defense industry’s growth, with contracts worth $10.2 billion in 2023, the government believes further investment is necessary to develop projects like an air defense system to guard against missile attacks.
