Turkey Not Planning to Tax Profits on Stocks or Crypto

(Bloomberg) — Turkey does not plan to tax profits from stocks and cryptocurrencies, Treasury and Finance Minister Mehmet Şimşek said.

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The government is considering imposing a “very limited” transaction tax on assets, Simsek told Bloomberg in Ankara, but did not specify its potential size.

While Turkey’s benchmark index, Borsa Istanbul 100 Index, reversed its losses on the news that it would rise up to 0.7 percent on Wednesday, Istanbul reduced its gains to 0.1 percent as of 17:18.

Şimşek said, “Our aim is not to leave a tax-free area in order to ensure justice and efficiency in taxation.”

Ata Portföy CEO Mehmet Gerz said, “The tax applied to stock trading, even if very limited, may cause inefficiency in the market and increase commissions and fees.” “This is a step forward to benefit from strong trading volumes.”

Bloomberg reported Tuesday that officials are discussing taxing income from stocks and cryptocurrencies. The Turkish stock market crashed on this story.

Şimşek is leading the pressure on fiscal tightening to control inflation, which rose above 75% last month. He has already announced plans for cuts in public spending and a minimum corporate tax rate.

–With the help of Tuğçe Özsoy.

(A comment is added to the fifth paragraph, market data is updated.)

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