Türkiye's AK Party submits bill to back investments, defense fund

The ruling Justice and Development Party (AK Party) on Friday said it had submitted a bill to the Parliament that includes changes to support investments and Türkiye's defense industry fund, Azernews reports via Daily Sabah.

AK Party parliamentary group chairman Abdullah Güler said the bill envisages revenues of TL 70 billion-TL 80 billion ($2 billion-$2.3 billion) for the Defense Industry Support Fund (SSDF).

This legislative move marks a new push by the government to secure additional funding for defense projects, especially given the strategic importance of drones and other defense technologies in Türkiye's military capabilities.

The bill's text says the tax impact of inflation adjustment for ongoing investments will be delayed during the period the investment is being made to encourage investments and increase predictability.

The proposed changes will also introduce additional contributions from citizens to support the fund.

According to Güler, the proposal includes a wide range of revenue-generating mechanisms. The key feature is the introduction of a participation fee in the SSDF, which would be derived from various declarations and transactions. This includes tax returns, customs declarations, social security premium statements, and combined declarations for monthly premiums and payrolls. For income tax returns, 50% of the stamp duty will be allocated to the SSDF.

The bill also imposes fees on a range of transactions:

Real estate transactions: Buyers and sellers will each pay TL 750, while other land registry and cadastral operations will involve a fee of TL 375.

Credit cards: Holders of credit cards with a limit of TL 100,000 or more will pay an annual fee of 750 TL per card.

Notary services: Fees will be applied to various notary transactions, including TL 3,000 for the registration of new vehicles, TL 1,500 for the sale and transfer of second-hand vehicles, and TL 75 for other notary-certified operations.

These fees will be categorized as service fees and directed to the SSDF.

Güler, during a news conference to announce the proposal, emphasized the significance of Türkiye's defense industry, particularly in unmanned aerial vehicle (UAV) technology, stating that the country ranks among the top three globally.

He underscored that projects within the sector are being financed through expenditures from the SSDF, which was established to develop a modern defense industry and support the modernization of the Turkish Armed Forces (TSK).