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Turkey introduces 0.03% cryptocurrency tax as part of economic reforms
Turkey has adopted a new financial measure, a 0.03% tax on cryptocurrency transactions, in response to economic challenges.
The Turkish government, dealing with a budget deficit due to last year’s natural disasters, has identified the thriving cryptocurrency market as a viable source of additional revenue. By imposing a minimum tax on transactions, the state expects to secure 3.7 billion lire a year.
This approach aims to stabilize public finances and capitalize on the growing trend of cryptocurrency trading among its citizens, who are increasingly turning to digital assets as a shield against the lira’s depreciation and soaring inflation.
Legislative moves and public reaction
The proposed tax reforms, set for parliamentary debate by the end of June, mark a significant shift in Turkey’s tax policy, the most comprehensive since the late 1990s. Despite initial denials regarding new taxes on cryptocurrencies and stock capital gains, the government has decided to proceed with the transaction tax, underlining the need for a fair and effective tax system.
This legislative push by President Recep Tayyip Erdogan’s administration reflects a strategic pivot to ensuring fiscal sustainability and regulatory compliance with international financial standards.
These moves are critical as the government seeks to restore investor confidence and economic stability, pushing forward with its agenda despite potential political obstacles and public dissent. This tax reform is part of a broader effort to revamp the nation’s economic landscape, ensuring a solid financial framework for future growth.
Read also: Turkey considers a limited transaction tax on stocks and cryptocurrencies