Turkey's new tax measures aim to boost defense spending amid increased geopolitical risks, Finance Minister Naci Ağbal said Thursday.

"The tax raises will be transferred directly to the defense industry fund as the fund is not a part of the central government budget," Ağbal said in a speech at the Istanbul Financial Summit.

The government on Wednesday announced new tax measures which aim to add TL 28 billion ($8 billion) to the revenue budget in 2018, in line with the Medium Term Program (MTP). The program targets an annual growth rate of 5.5 percent for 2018-2020.

According to the measures, the government will allocate an additional TL 8 billion of its existing revenues toward defense spending in order to increase the country's military power in the region.

Ağbal said that the defense industry's share in income and corporate taxes will be increased to 6 percent from the current level of 3.5 percent through the new measure.

"We are working on a legal regulation which will provide the basis for allocating a part of motor vehicle taxes directly to the fund," Ağbal added.