July 24, 2024
Latest Cryptocurrency News

Turkey Plans New Taxes Including 0.03% Crypto Transaction Tax

Turkey is set to introduce new taxes, including a 0.03% transaction tax on crypto trading. This decision comes as part of a sweeping fiscal overhaul aimed at tackling economic hardships exacerbated by 2023’s earthquakes.

According to Bloomberg, the proposed transaction tax on crypto trading is expected to generate approximately 3.7 billion liras annually. This move comes amid rising popularity among Turkish retail investors using cryptocurrencies to hedge against lira depreciation and high inflation rates.

Significant Fiscal Impact

The Turkish government anticipates that its broader tax reforms, including the crypto transaction tax, will yield around 226 billion liras ($7 billion). This is equivalent to 0.7% of the country’s GDP. The Ministry of Treasury and Finance plans to present the legislation for parliamentary debate by the end of June. This signals a pivotal shift in financial regulation under Mehmet Simsek’s leadership.

Political and Public Reaction

Despite earlier denials of plans to tax crypto and stock gains, the government’s current stance emphasizes targeted transaction taxes as part of comprehensive financial regulation. President Recep Tayyip Erdogan’s ruling party, which commands a parliamentary majority, is expected to support the legislation.

However, previous attempts to introduce transaction taxes have met with resistance, and political friction is anticipated in this latest initiative.

Moreover, the proposed reforms, if enacted, would constitute Turkey’s most significant tax overhaul in the past two decades. They aim to ensure equity and efficiency in taxation, aligning with Turkey’s broader economic recovery strategy amidst ongoing challenges.

Overall, this move to tax crypto trading reflects Turkey’s broader strategy to stabilize its economy and manage its fiscal challenges through comprehensive tax reforms.

Image by jannoon028 on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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