Mehmet Şimşek makes statement on credit card tax! Why will the deduction be made?

Treasury and Finance Minister Mehmet Şimşek made statements regarding the additional resource package for the defense industry following the recent emergence of the 750 TL contribution fee. This contribution fee has caused significant backlash, particularly on the grounds that it creates negative effects on low-income citizens. The government's introduction of such additional obligations has become a highly controversial issue at a time when the cost of living is increasing among the public.

Responding to questions from NTV Ankara Representative Ahmet Ergen during the live broadcast, Minister Şimşek emphasized the necessity of providing additional resources for defense industry projects. Stating, "We are in a difficult geography, we must increase our deterrence power. We have to provide additional resources to defense industry projects," Şimşek announced that the budget of the Defense Industry Fund for 2024 has been increased to 165 billion liras.

WHY WILL THE 750 TL DEDUCTION BE MADE?

Minister Şimşek stated that these resources would not affect the budget, saying, "This package was prepared entirely for defense resources. It is not a package made to reduce the budget deficit. Not a single penny of the package will enter the budget." Furthermore, Minister Şimşek expressed that they would take criticisms into account and that the Parliament would consider the evaluations received.

"SOME FUNDS ARISE FROM NECESSITY"

Şimşek expressed that this situation was inevitable with the words, "We cannot turn a deaf ear to criticisms. The Parliament will take the evaluations received into account. I also do not find off-budget funds correct in principle. But some funds arise from necessity."

Minister Şimşek made the following statements regarding credit cards during the live broadcast:

"AN IRON DOME WILL BE BUILT"

"The defense industry fund is an off-budget fund. Resources are needed for defense projects; with the 750 TL deduction to be made from credit cards, an iron dome will be built, and an air defense system will be established. We are in a difficult geography, we must increase our deterrence power. We have to provide additional resources to defense industry projects. Not a single penny of this money will come to the budget. All of it will be transferred to the defense industry. This package was prepared entirely for defense resources. The Ministry of Treasury and Finance has no involvement here. This is not a measure package prepared for budget needs. Since it is a special fund, it is impossible for it to be spent outside of the defense industry.

"WE ARE AGAINST OFF-BUDGET FUNDS"

In principle, I do not find off-budget funds correct, but some funds are needed. It is meaningful for the defense industry fund to be off-budget. I do not find it correct for other ministries to establish off-budget funds."