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Turkey is considering imposing a tax on credit cards to support its defence industries and boost its deterrence capabilities, Finance Minister Mehmet Simsek said.
During the first eight months of 2024, defence industries export revenues reached $3.7 billion dollars, an increase of 9.8% compared to the same period of 2023, according to Turkish Defence Industries President Haluk Gorgun.
The products of the defence sector, which includes Bayraktar unmanned aerial vehicles, account for almost 80% of the country’s export earnings ($10.2 billion in 2023).
These resources will go entirely to the defence industries: in other words, it is not an attempt to reduce the budget deficit, Simsek insisted during an interview with private television station NTV.
According to a bill prepared by the ruling AKP party, a tax of 750 Turkish lira (20 euros) would be imposed on cards with a credit limit of up to 100,000 Turkish lira (almost 2,700 euros), regardless of the amounts actually spent.
This prospect created queues of customers at the banks, who asked to reduce the credit limit of their cards.
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