Turkey’s ruling Justice and Development Party (AKP), led by President Recep Tayyip Erdogan, has introduced a controversial bill proposing a new tax on credit cards with high limits, writes Hotnews.
The bill aims to impose a 750-pound (around 20-euro) tax on credit cards with a 100,000-pound (roughly 2,700-euro) limit, regardless of how much credit is used, according to AFP.
Finance Minister Mehmet Simsek defended the proposal, saying the funds would be directed entirely to the defense sector, not to cover budget deficits.
Simsek argued that Turkey must bolster its defense capabilities due to regional instability, emphasizing that "fire and war" surround the country.
The proposal has sparked a public outcry, with many citizens rushing to banks to reduce their credit limits.
Simsek admitted that the bill could be amended in parliament, but maintained that strengthening defense is crucial.
Turkey’s defense industry has grown significantly over the past 20 years, producing 80% of the country’s defense needs domestically, including the highly successful Bayraktar drones.
However, opposition parties criticized the bill, claiming it is a tactic to divert attention from Turkey’s ongoing economic crisis.
Deniz Yucel, spokesman for the Republican People's Party (CHP), accused the government of using national security as a political tool and creating an artificial threat from Israel to cover up economic mismanagement.
Despite recent inflation dropping to below 50%, it remains a significant challenge for ordinary Turks, who face the impact of high living costs.
