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April 24, 2018 | International, Aerospace, Land, C4ISR

Turkey provides tax breaks, loans to attract investment in local defense programs


ANKARA, Turkey — In an effort to boost indigenous defense programs, Turkey is providing incentives, which include generous tax breaks, tax reductions and exemptions from import duties.

The incentives include additional levies and soft loans.

In just the first two months of 2018, the government incorporated 13 defense investment projects submitted by 12 companies into its incentives program. These investments are worth $350 million.

The largest investment program benefiting from the incentives during the January/February time frame was Roketsan's new production line. The state-controlled missile maker's investment plan is worth $217 million.

Military electronics specialist Aselsan, Turkey's largest defense company, has won incentives support for its new $35 million investment in electronic systems and new $40 million investment in aerial and missile systems.

Official figures show a boom in private defense investment, too. According to the Ministry of Economy, $1.9 billion of defense investment by private companies will be subsidized by government incentives this year.

These investment plans include a total of $220 million for armored vehicles, a laser gun and unmanned land vehicles; and $125 million in diesel tank engines by armored vehicle producer BMC, a Turkish-Qatari private joint venture.

Private firm Most Makina will receive government incentives for its planned $385 million investment in steel equipment for defense systems.

Turkish Aerospace Industries, or TAI, will invest $1.2 billion in its TF-X program, an ambitious plan for the design, development and production of Turkey's first indigenous fighter jet. TAI is developing the TF-X with BAE Systems.

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