A draft law submitted to Turkey’s parliament seeks to raise the digital services tax applied to international technology and media companies from 7.5 percent to 12.5 percent. If enacted, the measure could lead to higher subscription and advertising fees for users of film, video, music, gaming, and app platforms, and possibly to restrictions on some services.
MHP pushes for higher taxation of foreign platforms
The Nationalist Movement Party (MHP), an ally of President Recep Tayyip Erdoğan, proposed the bill, arguing that foreign digital platforms undermine domestic capital and that Turkey must protect its national interests in the digital sphere.
MHP Deputy Chair İsmail Özdemir also accused international platforms of using users’ personal data without consent.
Rising costs for consumers
Experts warn that the proposed increase would directly affect company costs, which are likely to be passed on to consumers through higher subscription prices and advertising fees. Economists caution that this could raise overall digital service costs, alter consumption behavior, and discourage new tech investments in Turkey.
Which platforms would be affected?
The measure targets foreign digital giants such as Netflix, Spotify, Google, Facebook, TikTok, Steam, and Amazon Prime Video, which would pay higher taxes on revenue generated in Turkey. Affected sectors include:
- Social media platforms (Facebook, Instagram, X/Twitter, TikTok)
- Video and music streaming services (YouTube, Spotify, Netflix)
- Gaming and app providers (Google Play, Apple App Store, Steam)
- Digital media outlets with advertising income
The tax increase would apply to digital advertising, content subscriptions, and streaming services.
Legal concerns and international implications
Legal experts say the proposed rate could conflict with EU and OECD taxation principles, potentially qualifying as discriminatory against foreign companies. Turkey could also face challenges under international trade agreements.
Domestic advantage and limits
The MHP says the measure aims to support Turkish digital platforms, but analysts argue it fails to address the sector’s structural problems, including infrastructure, content production, and user experience. Without broader reforms, the short-term benefits for domestic players will remain limited.
Global and political impact
If adopted, the hike would make Turkey’s digital services tax one of the highest in the world, raising concerns about the country’s investment climate and global reputation in the digital economy. The political opposition has yet to issue a strong response, though analysts expect heated debates in parliamentary committees.
Expanding digital restrictions
The proposal comes amid increasing government control over digital spaces. According to Interior Ministry data, more than 27,000 social media accounts were blocked in the first four months of 2025. Rights groups say such measures often target journalists, opposition figures, and independent media.
While presented as a step to “protect local media,” experts warn the plan carries economic, legal, and diplomatic risks and could further strain Turkey’s already fragile digital ecosystem.
