Passport perk for Turkish taxpayers

War in Iraq could cost Turkey dearly

Turkey's government might grant semi-diplomatic passport perks to businesspeople that pay their taxes promptly.

The creative thinking comes as the new government tries to shore up its creaking public finances.

Unlike most countries, Turkey gives out four different types of passport with various privileges according to the different class of person.

In an interview with Turkish newspaper Hurriyet, Finance Minister Kemal Unakitan said the state needed to incentivise people to meet their fiscal obligations.

"We have businessmen who pay a lot of tax and who have become international names," Mr Unakitan told the paper.

"They also frequently travel abroad. The state should not just give them a mere thank you, but should also grant them green passports."

"Green" passports are usually only available to government figures such as senior civil servants and former ministers and members of parliament, allowing the bearer to avoid paying a $50 departure tax in Turkish airports. They also permit visa-free entry to a number of countries.

Accounting for war

Turkey's need for increased revenues is acute, since the effect of a stagnant economy has been to reduce a tax take already denuded by widespread evasion.

Ankara has already accepted a $16bn loan package from the International Monetary Fund.

And should war start in Iraq, Turkey - as the only Nato member bordering the country - can expect a further economic hammering, as both tourism and trade suffer.

The US may offer a further aid package estimated by officials to be anywhere between $4bn and $15bn to help rescue the economy.

But that is contingent on an agreement to let ground forces pass through Turkey on their way to Iraq - something mainly Muslim Turkey is unwilling to allow just yet.