Varlik Vergisi
Encyclopedia
Varlık Vergisi 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. Though it was the Armenians
who were most heavily taxed.
During World War II
, Turkey remained neutral until February of 1945. Officially, the tax was devised to fill the state treasury that would have been needed had Nazi Germany
or the Soviet Union
invaded the country. However, it is argued, a main reason for the tax was to nationalize the Turkish economy by reducing minority populations' influence and control over the country's trade, finance, and industries.
The tax was paid by all citizens of Turkey, but higher tariffs were generally imposed on the country's non-Muslim inhabitants, often in an arbitrary and unrealistic way.
Around two thousand non-Muslims, who could not pay the enormous amount demanded for this sudden tax within the time-limit of thirty days, were arrested and sent to a forced labor camp in Aşkale
in Erzurum
Province of eastern Turkey. Twenty-one of these unfortunates died there.
The rigidly-enforced, discriminatory law did not yield the results the government had hoped for. Companies increased the prices of their products sharply to recoup their losses, creating a spiral of inflation that wrecked low-income consumers.
However, according to official information, the Turkish government collected 324 million liras, through the confiscation of non-Muslim assets. During a time in which one American dollar was equivalent to 1.20 Turkish lira.
The opposition Democratic Party (DP) capitalized on its unpopularity in the general elections of 1950, thereby achieving a landslide victory against the incumbent Republican People's Party
(CHP).
Years after the introduction of the Varlik Vergisi, the political elite of Turkey had difficulties to come to terms with the subject. The novel “The pearls of Ms. Salkım” (Salkım Hanımın Taneleri), written by Turkish
author Yilmaz Karakoyunlu, recounts stories and witnesses of the non-Muslims during the Varlik Vergisi. The novel was soon turned into a film. Members of parliament, such as Ahmet Çakar, were outraged at the screening and believed it is indecent and unacceptable under the guidance of nationalism.
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
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
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
.
The bill for the one-off tax was proposed by the Şükrü Saracoğlu
Sükrü Saracoglu
Mehmet Şükrü Saracoğlu was a Turkish politician and the sixth Prime Minister of Republic of Turkey. He was also the chairman of Fenerbahçe S.K. for 16 years between 1934-1950, including his time as prime minister as well.-Biography:...
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
Greeks in Turkey
The Greeks in Turkey constitute a population of Greek and Greek-speaking Eastern Orthodox Christians who mostly live in Istanbul, including its district Princes' Islands, as well as on the two islands of the western entrance to the Dardanelles: Imbros and Tenedos .They are the remnants of the...
, Armenians
Armenians in Turkey
Armenians in Turkey have an estimated population of 40,000 to 70,000 . Most are concentrated around Istanbul. The Armenians support their own newspapers and schools...
, and Levantines, who controlled a large portion of the economy. Though it was the Armenians
Armenians
Armenian people or Armenians are a nation and ethnic group native to the Armenian Highland.The largest concentration is in Armenia having a nearly-homogeneous population with 97.9% or 3,145,354 being ethnic Armenian....
who were most heavily taxed.
During World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, Turkey remained neutral until February of 1945. Officially, the tax was devised to fill the state treasury that would have been needed had Nazi Germany
Nazi Germany
Nazi Germany , also known as the Third Reich , but officially called German Reich from 1933 to 1943 and Greater German Reich from 26 June 1943 onward, is the name commonly used to refer to the state of Germany from 1933 to 1945, when it was a totalitarian dictatorship ruled by...
or the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
invaded the country. However, it is argued, a main reason for the tax was to nationalize the Turkish economy by reducing minority populations' influence and control over the country's trade, finance, and industries.
The tax was paid by all citizens of Turkey, but higher tariffs were generally imposed on the country's non-Muslim inhabitants, often in an arbitrary and unrealistic way.
Around two thousand non-Muslims, who could not pay the enormous amount demanded for this sudden tax within the time-limit of thirty days, were arrested and sent to a forced labor camp in Aşkale
Askale
Aşkale is a town and district of Erzurum Province in the Eastern Anatolia region of Turkey. The mayor is Ahmet Yaptırmış . The population is 12,509 -References:...
in Erzurum
Erzurum
Erzurum is a city in Turkey. It is the largest city, the capital of Erzurum Province. The city is situated 1757 meters above sea level. Erzurum had a population of 361,235 in the 2000 census. .Erzurum, known as "The Rock" in NATO code, served as NATO's southeastern-most air force post during the...
Province of eastern Turkey. Twenty-one of these unfortunates died there.
The rigidly-enforced, discriminatory law did not yield the results the government had hoped for. Companies increased the prices of their products sharply to recoup their losses, creating a spiral of inflation that wrecked low-income consumers.
However, according to official information, the Turkish government collected 324 million liras, through the confiscation of non-Muslim assets. During a time in which one American dollar was equivalent to 1.20 Turkish lira.
Abolition and aftermath
The draconian law could not sustain relentless criticism, and it was abolished on March 15, 1944.The opposition Democratic Party (DP) capitalized on its unpopularity in the general elections of 1950, thereby achieving a landslide victory against the incumbent Republican People's Party
Republican People's Party (Turkey)
The Republican People's Party is a centre-left Kemalist political party in Turkey. It is the oldest political party of Turkey and is currently Main Opposition in the Grand National Assembly. The Republican People's Party describes itself as "a modern social-democratic party, which is faithful to...
(CHP).
Years after the introduction of the Varlik Vergisi, the political elite of Turkey had difficulties to come to terms with the subject. The novel “The pearls of Ms. Salkım” (Salkım Hanımın Taneleri), written by Turkish
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
author Yilmaz Karakoyunlu, recounts stories and witnesses of the non-Muslims during the Varlik Vergisi. The novel was soon turned into a film. Members of parliament, such as Ahmet Çakar, were outraged at the screening and believed it is indecent and unacceptable under the guidance of nationalism.