Cryptocurrencies

Turkey is preparing to impose new taxes, including a 0.03% transaction tax on commercial transactions.

Turkey is preparing to impose new taxes, including a 0.03% transaction tax on cryptocurrency exchanges, as part of a major financial reform. The move aims to address the country’s budget deficit caused by the 2023 earthquakes and suggests a change in the approach to regulating financial transactions.

According to a report from Bloomberg, which took note of the proposed changes, the introduction of a transaction tax on cryptocurrency exchanges could be a significant boon in difficult economic conditions:

“The ministry is considering imposing a 0.03% transaction tax on cryptocurrency exchanges, which has become popular among Turkish individual investors seeking to protect themselves against the weak pound sterling and soaring inflation. This decision will bring in 3.7 billion liras per year, according to official forecasts.

about: Turkey denies plans to tax cryptocurrencies and stock market gains

Tax reform will generate 7 billion dollars

Tax reforms proposed by the Turkish government are expected to generate 226 billion lira ($7 billion), equivalent to around 0.7% of the country’s gross domestic product. The Ministry of Treasury and Finance, headed by Mehmet Simsek, has drafted a bill for parliamentary discussion by the end of June.

The 0.03% transaction tax aims to capitalize on the growing popularity of cryptocurrency trading among Turkish investors seeking to protect themselves against inflation and currency depreciation.

These reforms will represent the most significant tax change in Türkiye in the past two decades.

about: Turkey proposes to align cryptocurrency legislation with international standards

The fiscal turning point in Türkiye

Despite previously denying plans to tax cryptocurrencies and stock market gains, the Turkish government is now considering taxing targeted transactions to ensure comprehensive financial regulation. On June 5, Simsek said Turkey aimed “not to leave any tax free zones in order to ensure fairness and efficiency in taxation.”

Previously rejected plans to tax cryptocurrencies and stocks came with little warning about proposed “very limited” transaction fees.

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Again until the escape

President Recep Tayyip Erdogan’s ruling party, which has a parliamentary majority, is expected to approve the bill and impose a new transaction tax of 0.03%. However, previous attempts to impose transaction taxes have been met with significant backlash, and political disagreements are expected in current efforts.

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