A recent AKP bill caused alarm among credit card holders. It proposes a 750 Lira annual fee. The fee applies to credit cards with credit limits over 100,000 Liras, aimed at supporting Turkey’s defense industry.
According to the bill, a 750 Turkish Lira contribution will be collected annually. This fee will go to a defense industry fund. It applies to credit cards with credit limits totaling 100,000 TL or more.
The announcement led cardholders to rush to banks to lower their account limits. Many also contacted their banks in an attempt to cut the limits on their credit cards.
Many clients were met with an automated message on customer service hotlines, stating the bill was not yet in effect.
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Other banks left the following message on their customer service pages: “The regulation for the defense industry contribution share to be collected from credit cards has not been passed nor entered into effect. Therefore, we would like to announce that there is no need for customers to lower their credit card limits in connection with this proposed regulation.”
credit cards, AKP, defense industry, turkey
Turkey’s defense expenditures
Turkey’s defense industry has grown rapidly, gaining recognition for its advanced unmanned aircraft and technology. Particularly, Turkey’s contribution of Bayraktar TB2 drones to Ukraine in 2021. The industry also seeks to reduce dependence on foreign suppliers. Additionally, Turkey’s military budget currently stands at its lowest in 20 years.($10 billion, according to SIPRI). Turkey’s defense budget peaked in 2019 when engaged in a ground war in Syria. Facing economic challenges, the government has made widespread cutbacks since then. The mandatory contribution raises questions about whether the government expects credit card holders to compensate. Many citizens worry about the financial burden, especially during these challenging economic times.
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credit cards, AKP, defense industry, turkey
Written/translated for Medyascope by Leo Kendrick
