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Turkish government faces criticism over tax incentives for Akkuyu nuclear plant

The Turkish government is facing political backlash regarding a new legislative proposal that would extend tax exemptions for the Akkuyu nuclear power plant, currently under construction by the Russian state corporation Rosatom, until 2045. The bill under discussion in the Grand National Assembly includes provisions for VAT refunds on construction work and duty exemptions on machinery and equipment.

Opposition CHP lawmaker Deniz Yavuzyilmaz has alleged that these new measures amount to approximately $5 billion in incentives, bringing the total value of benefits provided to the project to $14.8 billion. Yavuzyilmaz characterized these subsidies as the "price of the S-400s," suggesting that Ankara is attempting to balance its relationship with Moscow while concurrently seeking to rejoin the U.S.-led F-35 fighter jet program.

The debate highlights ongoing geopolitical tensions, as the U.S. State Department maintains that the removal of Russian-made S-400 missile systems from Turkey remains a prerequisite for any potential F-35 transfer. The proposed legislation remains under review in the Turkish parliament as part of broader fiscal adjustments involving the controversial energy project.

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