Turkish Government Proposes Credit Card Surcharge to Finance Defense Procurement

In a bid to enhance financing resources for the Turkish defense industry, the Turkish government has proposed a credit card surcharge as part of new legislation.

The Law on Certain Regulations Regarding the Defense Industry and the Bill of Law on Amendments to Certain Laws have been submitted to the Presidency of the Grand National Assembly of Turkey. If approved, these measures will implement a series of regulations designed to increase revenue for the Defense Industry Support Fund (SSDF).

The proposed legislation includes a defense industry contribution fee, which will be collected from credit card users. Specifically, holders of credit cards with limits of 100,000 lira or above will be subject to an annual participation fee of 750 lira for each card. This initiative is part of broader efforts to secure additional funding for defense procurement in Turkey.

Furthermore, the government plans to collect contributions from various financial documents and transactions. For instance, a portion of the stamp duty amount will be levied on tax returns, customs declarations, insurance premium declarations, and other related documents. Annual income tax returns will also incur a fee amounting to half of the stamp duty.

In real estate transactions, a separate participation fee of 750 lira will be charged to both the buyer and seller during land registry and cadastral transactions. Other transactions will incur a 375 lira fee, while additional fees will be imposed for notary services: 3,000 lira for vehicle registrations, 1,500 lira for vehicle sales, and 75 lira for various other notary transactions.

To ensure all funds are directed to the SSDF, no share or membership fees will be taken from the amounts collected from notary transactions. The proposed fees will be subject to annual increases based on the previous year's revaluation rate, beginning at the start of each calendar year.