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Varlık Vergisi ("Wealth tax" or "Capital tax") was a Turkish tax levied on the wealthy citizens of Turkey in 1942, with the stated aim of raising funds for the country's defense in case of an eventual entry into World War II.

The bill for the one-off tax was proposed by the Şükrü Saracoğlu government, and the act was adopted by the Turkish parliament on November 11, 1942. It was imposed on the fixed assets, such as landed estates, building owners, real estate brokers, businesses and industrial enterprises of all citizens, including the minorities. However, those who suffered most severely were non-Muslims like the Jews, Greeks, Armenians and Levantines, who controlled a large portion of the economy.^[1]

During World War II, Turkey remained neutral until February 1945. Officially, the tax was devised to fill the state treasury that would be needed if the Germans or Russians would invade the country. However, it is argued that another main reason was to nationalize the Turkish economy by reducing the minority populations' influence and control over the country's trade, finance and industries.

The tax was paid by all citizens of Turkey, but the country's non-Muslim inhabitants were generally imposed higher tariffs, often in an arbitrary and unrealistic way.

Around 2,000 non-Muslims, who could not pay the enormous amount demanded for this sudden tax within the time-limit of 30 days, were arrested and sent to a forced labor camp in Aşkale near Bayburt in eastern Turkey. 21 of them died there.

The rigidly-enforced and in nature, racist law did not yield the results the government had been hoping for. Companies increased the prices of their products sharply to recoup their losses, creating a spiral of inflation that wrecked low-income consumers.

[edit] Abolition and aftermath

The draconian law could not sustain the relentless criticism, and was abolished on March 15, 1944.

The opposition Democratic Party (DP) capitalized on its unpopularity in the general elections of 1950,^[1] thereby accomplishing a landslide victory against the incumbent Republican People's Party (CHP).

[edit] References

1. ^ ^{a b} Güven, Dilek (2005-09-06). "6-7 Eylül Olayları (1)" (in Turkish). Radikal. http://www.radikal.com.tr/haber.php?haberno=163380. Retrieved 2008-10-25. "Nitekim 1942 yılında yürürlüğe giren Varlık Vergisi, Ermenilerin, Rumların ve Yahudilerin ekonomideki liderliğine son vermeyi hedeflemiştir...Seçim dönemleri CHP ve DP'nin Varlık Vergisi'nin geri ödeneceği yönündeki vaatleri ise seçim propagandasından ibarettir." 

[edit] Further reading

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