(Bloomberg) -- Turkish lawmakers unexpectedly paused discussions on a new tax and fee package aimed at raising funds for the defense industry, following public backlash over some of its key provisions.
AK Party whip Abdullah Guler said talks ended for the time being, with the potential for the bill to be revisited next year, NTV news channel reported.
The package included a particularly controversial proposal that sought an annual fee of 750 liras ($22) from credit cards with limits exceeding 100,000 liras. Local media earlier suggested that tens of thousands rushed to lower their card limits in response to the fee.
The bill, submitted by the AK Party, overall saw an additional income of around $2 billion. The proceeds were seen transferred to the government’s defense fund. Other articles in the proposal included registration fees for new and second-hand vehicles and additional fees during real estate purchases.
Treasury and Finance Minister Mehmet Simsek said earlier Tuesday that funds were needed for defense projects over Turkey’s location in a “difficult” geography. “This package was prepared fully for resources for defense,” he told NTV news channel. “It’s not a package to narrow the budget deficit.”
Investors have been seeking a larger fiscal consolidation from Simsek to help slow inflation that’s slightly under 50% in annual terms. The nine-month budget deficit this year has surpassed 1 trillion liras.
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