Turkey has officially abandoned plans to impose a new tax on profits from stock trading and cryptocurrencies, a move that has provided relief to investors.
Vice President Cevdet Yilmaz confirmed this decision in an interview with Bloomberg on Monday, stating that the government is currently focused on narrowing existing tax exemptions rather than introducing additional levies.
The initial proposal to tax stock market gains had sparked significant public backlash earlier this year, leading to a decline in trading activity. While the government had initially paused the plan, Yilmaz’s recent statement definitively ends any hopes of its revival.
This decision is part of Turkey’s broader economic reform agenda, which aims to reduce inflation and improve public finances. The government has already made progress in addressing public spending and is working to balance the budget, which was strained by last year’s earthquakes and pre-election expenditures.
Investors are closely watching Turkey’s economic transformation and are hopeful that the government’s policies will lead to a more stable and prosperous economy. While there may be short-term challenges in managing inflation and growth, Yilmaz expressed confidence in the long-term compatibility of these goals.
Regarding the Turkish lira, the government believes that its recent appreciation is a natural consequence of the country’s efforts to combat inflation. However, they will continue to monitor the currency’s value and take appropriate measures if necessary.
