Turkey Mulls Taxing Crypto Gains To Support Disinflation: Report Reveals
Turkey plans to introduce taxes on gains from crypto and stock trading. This was revealed by an official on June 5, and the decision is part of the strategic move to enforce strict fiscal discipline and improve price stability after the country has faced inflation challenges
The proposal to impose tax on crypto and stock gains was discussed by Turkey’s Finance Minister Mehmet Simsek during a ruling-party meeting over the weekend. At the meeting, Simsek emphasized the necessity of proper taxation on all financial income.
Simsek had previously stressed the government’s dedication to creating a fair tax system, which includes the introduction of a minimum corporate tax. This proposed regulation is a departure from the previous policy, which reduced tax on stock gains from 10% to 0% In 2008.
Turkish parliament review on crypto legislation is scheduled for this week, as new regulations are expected to be addressed after the parliamentary review. Meanwhile, the specific details of the plan are still under review, and discussions are expected to continue.
The impact of the news has seen a drop in the Borsa Istanbul 100 index, which closed at 1.8% on June 4. The after-effect of the news also led to a drop in the Turkish currency – lira, which saw a 1.2% depreciation. Also, the Turkish stock index fell by 1.4%, and the banking index saw a significant drop of 3%.
The Turkish stock index fell 1.4%, hitting a new low for the day, and the banking index fell 3%. Media reports said Turkey is considering taxing profits from stocks and digital currencies.
— Annette (@Annette_888) June 4, 2024
This proposed move to tax gains from crypto and stock trading is also coming amidst an increasing Turkish interest in the stock market. Central
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