Turkey is gearing up to implement fresh taxes, including a 0.03% transaction tax on cryptocurrency trading, as part of a major fiscal overhaul. The objective is to tackle the country’s budget deficit stemming from the 2023 earthquakes and propose a shift in the approach to financial transaction regulation.
As per a report from Bloomberg, the proposed changes suggest that imposing a transaction tax on crypto trading could bring in a substantial amount during challenging economic times:
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Turkey refutes plans to tax crypto, stock gains
Tax reform set to yield $7 billion
The Turkish government’s proposed tax reforms are projected to generate 226 billion liras ($7 billion), approximately 0.7% of the country’s gross domestic product. The Ministry of Treasury and Finance, under the leadership of Mehmet Simsek, has prepared legislation for parliamentary review by the end of June.
The move to implement a 0.03% transaction tax aims to capitalize on the increasing interest in crypto trading among Turkish investors looking to hedge against inflation and currency devaluation. These reforms would represent the most significant tax change in Turkey in the past two decades.
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Turkey suggests aligning crypto regulations with global standards
Turkey reconsiders tax stance
Despite denying earlier intentions to tax crypto and stock gains, the Turkish government is now contemplating targeted transaction taxes to ensure comprehensive financial regulation. On June 5, Simsek mentioned that Turkey’s goal was to “tax every possible area to ensure fairness and efficiency in taxation.”
The previously rejected plans to impose crypto and stock taxes came with a slight suggestion of “very limited” transaction levies.
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Key points about the Turkish crypto bill before its introduction
Once more into the fray
President Recep Tayyip Erdogan’s ruling party, with a parliamentary majority, is expected to pass the proposed legislation and enforce the new 0.03% transaction tax. However, previous attempts to introduce transaction taxes have met with significant opposition, and political discord is anticipated in this current endeavor.
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