The government has proposed the biggest tax overhaul in recent years by imposing new taxes on companies. This is also an effort to replenish funds vacated by last year’s devastating earthquakes. Although it aims to increase revenues, high taxes worry investors. Some investors are even shifting their investments to cryptocurrencies to reduce their tax burden. The reforms aim to improve Turkey’s post-disaster financial situation. However, too high taxes also bring the risk of losing investments.
Fiscal impacts and legislative details of cryptocurrency tax
cryptokoin.comAs you’ve been following from , regulatory pressure on cryptocurrencies is increasing around the world. One aspect of these regulations is tax. As a matter of fact, Türkiye is also taking some steps in this direction. In this context, the government is preparing to significantly shake up the country’s tax system. According to sources, authorities are preparing a new tax law to be discussed in parliament at the end of this month. We’re not just talking about minor changes here. It would be the most comprehensive overhaul of Turkey’s tax code since taxes were raised to finance recovery efforts after the 1999 earthquake.
The new measures are expected to bring 226 billion lira of additional income to the state coffers. This means approximately 7 billion dollars. In other words, it corresponds to 0.7% of Turkey’s GDP. It’s a significant revenue boost that officials see as critical to reigniting the country’s economic recovery. One of the most striking proposals targets the rapidly growing cryptocurrency market in Turkey. The constant weakening of the TL and rising inflation have recently directed many investors to digital assets. According to sources, the government wants to impose a 0.03% transaction tax on cryptocurrency trading. Authorities estimate that this crypto tax will bring in 3.7 billion lira annually.
Political landscape and future implications
These tax reforms signal Turkey’s determination to streamline fiscal policy amid economic turmoil. But with such big changes on the table, it is certain that debates in parliament will be heated in the coming weeks. The government led by President Recep Tayyip Erdoğan’s party is trying to pass some controversial new tax laws. Thanks to their majority in the parliament, it is not very difficult for them to pass these if they want. However, the government had to step back from part of the plan after it attracted great reaction.
Minister of Treasury and Finance Mehmet Şimşek announced that they would initially impose a tax on stock buying and selling transactions. But traders and investors quickly disputed this. As a reason for objection, they claimed that this move would increase costs and kill market activities. Faced with this heated opposition, the government postponed the idea of a stock trading tax for now. Although it has abandoned the stock tax, the government has not stopped taxing cryptocurrency transactions. They have proposed a tax on cryptocurrency trading as part of a broader effort to more tightly regulate the crypto industry. They even put forward a draft law that would require crypto firms to be licensed and registered.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!