Turkey Abandons Tax Plans on Stock and Crypto Gains, Easing Investor Fears

Turkey has decided against implementing taxes on gains from stock and cryptocurrency trading, as confirmed by Vice President Cevdet Yılmaz in a recent Bloomberg interview.

He emphasized that there are no plans for new tax measures in 2024, alleviating investor worries.

Yılmaz explained that the topic of a share tax has been previously discussed but is no longer on the agenda. Instead, the government plans to refine existing tax incentives as part of its economic strategy.

The initial proposal for taxing stock market profits was met with widespread criticism, especially from retail traders using stocks as an inflation hedge. Following public backlash, Treasury Minister Mehmet Şimşek mentioned in June that the matter would be reconsidered in the future.

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Yılmaz’s comments may provide some comfort to investors, particularly as trading volumes on Turkey’s main stock exchange have dropped significantly, from $4 billion earlier this year to $2.3 billion last month.

The government’s priority remains restructuring public finances, targeting a reduction in inflation from the current 52% to single digits within three years, amidst challenges posed by earthquake recovery costs and pre-election spending.

Alexander Stefanov