ISTANBUL: The Turkish government on Tuesday postponed until 2025 a parliamentary debate on a proposed tax on credit cards, which it sought to fund the arms industry as conflict rages in its neighborhood.
Indignant Turks, who already face double-digit inflation, called their banks to lower their credit limits after the governing AKP party submitted the tax bill to parliament on Friday.
After the public outcry, the AKP announced Tuesday that it was delaying debating the bill until next year.
“There were certain objections from our citizens, we will examine all of this in detail,” said the AKP’s parliamentary group chairman, Abdullah Guler.
“We have postponed our discussions and we will reconsider, after the budget, if there are some points to change or remove,” he said.
The proposed legislation came as Israel’s conflicts with Tehran-backed Islamist militants in Gaza and Lebanon, and missile strikes by Iran, have raised global concerns that a broader war could erupt in the Middle East.
“Our country has no choice but to increase its deterrent power. There’s war in our region right now. We are in a troubled neighborhood,” Finance Minister Mehmet Simsek told private broadcaster NTV earlier on Tuesday.
The bill stipulated that people with a credit card limit of at least 100,000 liras (nearly $3,000) would have to pay an annual 750 lira ($22) in tax from January to bolster the defense industry.
“If we increase our deterrent power, then our ability to protect against fire in the region will increase,” Simsek had said, though he added that the bill was in the hands of parliament and that the AKP, could “re-evaluate” it.
When he proposed the tax on Friday, Guler said that Israel’s next target would be Turkiye, an argument often cited by President Recep Tayyip Erdogan.
A vocal critic of Israel’s offensive in Gaza and Lebanon, Erdogan doubled down on the threat posed by Israel when addressing a conference hosted by his AKP party on Tuesday.
“Even if there are those who cannot see the danger approaching our country... we see the risk and take all kind of measures,” he said.
Turkiye’s defense industry has enjoyed a boom in recent years but Simsek said the sector still needed a boost.
The defense industry is planning to invest in 1,000 projects, including an air defense system that would protect Turkiye from missile assaults, Simsek said.
Turkiye allocated 90 billion lira from the budget to fund the defense industry last year, he added.
“This year, we increased it to 165 billion lira. Maybe we will need to double this even more.”
Turkiye’s defense companies signed contracts in 2023 worth a total of $10.2 billion, according to Haluk Gorgun, the head of Turkiye’s state Defense Industry Agency (SSB).
The top 10 Turkish defense exporters contributed nearly 80 percent of total export revenue, he said.
Sales of Turkish Baykar drones, used in Nagorno-Karabakh or Ukraine, amounted to $1.8 billion.
Last week, parliament held a closed-door session for the government to explain why it saw Israel as a potential threat, but the opposition said it was not convinced.
The spokesman for Turkiye’s main opposition CHP party, Deniz Yucel, said Monday that the government was exploiting nationalist feelings to sweep an “economic crisis” under the carpet.
Inflation has spiralled over the past two years, peaking at an annual rate of 85.5 percent in October 2022.
Official data showed it had slowed to 49.4 percent in September.
“The AKP is trying to create a fake ‘foreign threat and war agenda’ with the rhetoric of ‘Israel may attack us’,” Yucel said.
“We know and see that they are trying to disguise the economic crisis they caused.”
Turkish government delays tax plan to fund defense industry
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Turkish government delays tax plan to fund defense industry
- The bill stipulated that people with a credit card limit of at least 100,000 liras (nearly $3,000) would have to pay an annual 750 lira ($22) in tax from January to bolster the defense industry
Washington presses Syria to shift from Chinese telecom systems
- Syria is exploring the possibility of procuring Chinese technology
- It was unclear whether the United States pledged financial or logistical support to Syria to do so
DAMASCUS: The United States has warned Syria against relying on Chinese technology in its telecommunications sector, arguing it conflicts with US interests and threatens US national security, according to three sources familiar with the matter.
The message was conveyed during an unreported meeting between a US State Department team and Syrian Communications Minister Abdulsalam Haykal in San Francisco on Tuesday. Washington has been coordinating closely with Damascus since 2024, when Syria’s now President Ahmed Al-Sharaa ousted longtime leader Bashar Assad, who had a strategic partnership with China.
Syria is exploring the possibility of procuring Chinese technology to support its telecommunications towers and the infrastructure of local Internet service providers, according to a Syrian businessman involved in the procurement talks.
“The US side asked for clarity on the ministry’s plans regarding Chinese telecom equipment,” said another source briefed on the talks.
But Syrian officials said infrastructure development projects were time-critical and that Damascus was seeking greater vendor diversity, the source added.
SYRIAN OFFICIALS CITE US EXPORT CONTROLS AS TELECOMS BARRIER
Syria is open to partnering with US firms but the matter was urgent and export controls and “over-compliance” remained an issue, according to person familiar with the meeting in San Francisco.
A US diplomat familiar with the discussions told Reuters that the US State Department “clearly urged Syrians to use American technology or technology from allied countries in the telecoms sector.”
It was unclear whether the United States pledged financial or logistical support to Syria to do so.
Responding to Reuters questions, a US State Department spokesperson said: “We urge countries to prioritize national security and privacy over lower-priced equipment and services in all critical infrastructure procurement. If it seems too good to be true, it probably is.”
The spokesperson added that Chinese intelligence and security services “can legally compel Chinese citizens and companies to share sensitive data or grant unauthorized access to their customers’ systems” and promises by Chinese companies to protect customers’ privacy were “entirely inconsistent with China’s own laws and well-established practices.”
China has repeatedly rejected allegations of it using technology for spying purposes.
The Syrian Ministry of telecommunications told Reuters any decisions related to equipment and infrastructure are made “in accordance with national technical and security standards, ensuring data protection and service continuity.”
The ministry said it is also prioritizing the diversification of partnerships and technology sources to serve the national interest.
Syria’s telecom infrastructure has relied heavily on Chinese technology due to US sanctions imposed on successive Assad governments over the civil war that grew from a crackdown on anti-government protests in 2011.
Huawei technology accounts for more than 50 percent of the infrastructure of Syriatel and MTN, the country’s only telecom operators, according to a senior source at one of the companies and documents reviewed by Reuters. Huawei did not immediately respond to a request for comment.
Syria is seeking to develop its private telecommunications sector, devastated by 14 years of war, by attracting foreign investment.
In early February, Saudi Arabia’s largest telecom operator, STC, announced it would invest $800 million to “strengthen telecommunications infrastructure and connect Syria regionally and internationally through a fiber-optic network extending over 4,500 kilometers.”
The ministry of telecommunications says that US restrictions “hinder the availability of many American technologies and services in the Syrian market,” emphasizing that it welcomes expanding cooperation with US companies when these restrictions are lifted.
Syria has inadequate telecommunications infrastructure, with network coverage weak outside city centers and connection speeds in many areas barely exceeding a few kilobits per second.
