A draft law pushed by the Turkish government to impose additional fees on credit cards, property transfers, vehicles, notaries and wristwatches in order to fund the domestic defense industry has been withdrawn.

The decision was announced last Friday, October 11, and today the discussion of the bill began in the relevant Budget and Planning Committee of the Turkish National Assembly. However, after the debate, the chairman of the committee, MP of the ruling Justice and Development Party (AKP), Abdullah Guler, ended its work and announced to reporters the withdrawal of the bill because “objections were raised to a more thorough study of some of its points and there were some objections from citizens”.

Guler said the 2025 state budget will be tabled in the National Assembly this week, stressing that there will be a reassessment of both the objectionable items and the amounts in other budget lines.

“We can say it was postponed. We will examine in more detail the other funds that will be needed and reassess the issues that need to be changed or withdrawn, if any, in the period after the budget is passed,” said Abdullah Guler.

He stressed, however, that Turkey is watching its defense industry as the “apple of its eye” and serious additional resources are needed, especially for the newly developed air defense system, the so-called “steel dome”, and for other electronic warfare systems.

The withdrawn draft law would have imposed additional fees on transfers of real estate, vehicles, notaries and credit cards, which would be withheld to be allocated to Turkey’s “Defense Industry Support Fund”.

Indicative amounts that would be proposed as fees in favor of the Fund were:

– On credit cards with a limit of more than 100,000 Turkish Liras (approximately 2,700 Euros) an annual fee of 750 Turkish Liras (20 Euros)

– In real estate transfers 750 Turkish liras (20 euros) separately from the buyer and the seller

– For the rest of the services at the Land Registry Offices 375 Turkish liras (10 euros)

– In notarial acts for registration of new vehicles 3,000 Turkish liras (80 euros)

– In notarial acts for registration of used vehicles 1,500 Turkish liras (40 euros)

– For other notarial acts 75 Turkish liras (2 euros) for each one

– In the purchase of wristwatches worth more than 5,000 Turkish liras (133 euros) fees of 20% on their value

– 20% of the road tax on motorcycles under 100 cc and electric two-wheelers under 6 kW

The additional fund that the Turkish government is looking for to support the “Defense Industry Support Fund” is estimated at 70 billion Turkish liras, i.e. 2 billion euros.

The said Fund was created in 1985 by the then government of Turgut Özal and its mission is to finance the country’s defense programs. It is the most important resource of the Turkish government’s Defense Industry Directorate, whose duties include “planning the production in private or public entities of the required modern weapons, tools and equipment.” The fund has a special status, it is independent and the money it manages is not part of the State Budget, on the contrary, Budget resources can be transferred to it.