Turkey Scraps Planned Crypto Tax, Targets Economic Reforms

Turkey has decided not to move forward with a new tax targeting stock market and cryptocurrency gains, according to Vice President Cevdet Yilmaz. While previously discussed, the plan has been dropped, with the government focusing instead on reducing tax exemptions. This shift follows concerns about the stock market and broader efforts to stabilize the economy and reduce inflation.

Turkey Halts Stock and Cryptocurrency Tax Plan Amid Economic Reforms

Turkey has decided to halt plans for introducing a new tax package targeting stock market and cryptocurrency gains this year, according to Vice President Cevdet Yilmaz. In an interview with Bloomberg, Yilmaz clarified that the government does not currently have a stock tax on its agenda.

He mentioned that while the proposal had been discussed earlier, it is no longer being considered, stating:

We don’t have a stocks tax on our agenda. It was discussed previously and fell from our agenda.

Instead, the focus will shift to reducing tax exemptions in the coming period, he clarified.

Earlier this year, talks of a potential stock market tax, aimed at addressing inflation, led to unease among investors, pushing equity trading volumes down. Treasury and Finance Minister Mehmet Simsek had already indicated in June that the plan would be reassessed.

Turkey is facing the challenge of lowering its inflation rate, which currently stands at 52%. Addressing this, Yilmaz noted that improving the country’s public finances remains a priority. Additionally, he mentioned that offshore swap regulations limiting lira liquidity would eventually be lifted, depending on market conditions, as part of broader economic reforms aimed at stabilizing the currency and reducing inflation.