New regulations are being implemented to provide additional funding for defense industry investments. In this regard, fees will be transferred to the Defense Industry Support Fund from vehicle and real estate transactions, notary procedures, and credit cards. Service fees from credit cards will be deducted at the beginning of January, with a separate fee for each card. In January, a fee of 750 TL per card will be charged. Motorcycles under 100 CC will be included in the Motor Vehicle Tax (MTV) scope. Drones and watches over 5,000 TL will also fall under the scope of Special Consumption Tax (SCT). The bill containing the transfer of funds to defense has been submitted to the Parliament.

To generate additional funding for defense industry investments, new regulations are being introduced.

The bill prepared by the AK Party has been submitted to the Presidency of the Parliament.

Through vehicle and real estate transactions, notaries, and a fee of 750 TL from credit cards, contributions will be made to the Defense Industry Support Fund.

The following adjustments are included in the draft to increase the revenue of the Defense Industry Fund: – Stamp duty amount taken from tax returns, customs declarations, social security institution declarations, the same amount as stamp duty amount from annual income tax returns, half of the stamp duty amount, – 750 TL from the buyer and seller separately in real estate transactions, – 375 TL from other transactions made in the title deed,

The wording for this adjustment in the proposal states: “For real estate and cadastral transactions; 750 TL separately from the buyer and seller in property sales (For multiple purchases and sales made simultaneously for the same property among the same individuals, the amount is charged once from each buyer and seller without being associated with the number of transactions.), a fee of 375 TL taken from the transaction made in the title deed (Participation fees are not collected from public institutions subject to Public Financial Management and Control Law No. 5018, investment monitoring and coordination directorates, development agencies, and village legal entities.), – 3,000 TL for zero vehicle registrations at notaries, 1,500 TL for second-hand vehicle transactions, 75 TL for other procedures,

SERVICE FEE FROM CREDIT CARDS

A contribution fee will be charged to the Defense Industry Support Fund from credit cards with a limit of 100,000 TL and above annually.

The wording for this case in the proposal says: “An annual payment of 750 TL per cardholder from holders of cards with the determined limit of 100,000 Turkish Liras and above (If the card is renewed for any reason during the year and the payment has been made for the relevant year, no additional payment will be taken, if the card is canceled for any reason, the payment will not be refunded. Additional fees are not collected for supplementary cards issued within the limits of a physical card and non-physical cards.),”

WHEN WILL THE SERVICE FEE FROM CREDIT CARDS START?

In the bill, it is requested that the service fee from credit cards start from January 1. At the beginning of January, the service fee will be deducted from the credit card holder by the bank. According to the regulation, service fees will also be charged from cards whose limits increase or new cards are obtained during the year. According to the regulation, for those with more than one card, a service fee will be paid for each card.

The service fee from credit cards will be deducted by the bank in January and transferred to the fund. The draft includes the following provisions: “The fee is reflected in the cardholder’s account by the credit card issuing institutions as of the 5th day of the January of each year, is shown on the relevant period’s account statement, the amount collected from the cardholder is declared with the bank and insurance transactions tax return due to be submitted in the following month and this tax is paid within the payment period. The contribution fee for cards taken during the year or falling within the scope of the abovementioned clause is reflected in the account of the month when the card is put into use or the limit increase is made and paid within the scope of this clause.”

MOTORCYCLES BELOW 100 CC, DRONES, AND WATCHES SUBJECT TO TAX

A new arrangement is also being made in the Motor Vehicle Tax. Accordingly, motorcycles with a cylinder capacity of less than 100 CC and motorcycles with a motor power of 6 kW and below are included in the scope of the Motor Vehicle Tax.

In the 3rd article of the draft, it is stated: “The phrase ‘up to 100-250 cm³’ in the first line of the “Motorcycles” section following the first paragraph of Article 5 of the Motor Vehicle Tax Law No. 197 dated 18/2/1963 has been changed to ‘up to 250 cm³’ and the phrase ‘exceeding 6 kW but’ in the (a) subparagraph of the third paragraph has been removed from the article text.”

Drones and watches with a SCT base exceeding 5,000 TL are also included in the Special Consumption Tax.

“NOT A TAX, A SERVICE FEE” AK Party Group Chairman Abdullah Güler stated that these regulations are transaction service fees, not taxes. With these regulations, a contribution of 75-80 billion TL is aimed.