Türkiye proposes new defense fund fee for high-limit credit cards

A new bill presented to the Turkish Parliament proposes an annual participation fee of ₺750 ($21) for credit cards with a limit of ₺100,000 ($2,900) or more, as part of the government’s effort to increase funding for the Defense Industry Support Fund (SSDF).

The legislation aims to raise nearly ₺14 billion ($407.9 million) annually, affecting approximately 18.7 million cardholders in Türkiye.

Wide-reaching impact of new fee

According to the Risk Center’s August 2024 report, around 49.2% of individual credit cardholders in Türkiye have a credit limit of ₺100,000 or more. This fee, if approved, would apply to these cardholders, generating substantial funds for the SSDF.

The proposed law also introduces new fees for vehicle registration and sales, as well as adjustments to the Motor Vehicles Tax (MTV) for certain motorcycles.

Additional fees on vehicle sales and registrations

Under the bill, a fee of ₺3,000 ($87) will be charged for new vehicle registrations, while second-hand vehicle sales and transfers will incur a fee of ₺1,500 ($43).

Motorcycles with engine capacities below 100 cc and those with motor power under 6 kW will now be subject to MTV, starting from the date of the law’s enactment.

Expansion of the defense fund contribution

The bill also outlines other ways to increase contributions to the SSDF, including participation fees from various transactions, such as property sales and notary services.

Contributions will be applied to all transactions without exemptions, and notary services will be responsible for collecting and remitting the fees.