Cevdet Yılmaz, Turkey’s Deputy President, revealed that the focus of the new legislative year will be on revising tax regulations, as reported by Bloomberg. However, Yılmaz clarified that the government currently does not prioritize introducing taxes on stock transactions or cryptocurrencies. Significant changes in existing tax rates are also not anticipated.
Why Are Stock and Cryptocurrency Taxes Not Prioritized?
Yılmaz highlighted that previous debates on taxing stocks and cryptocurrencies have been sidelined and will not feature in the forthcoming legislative period. The government is more concerned with refining current tax exemptions and deductions rather than modifying the overall tax rate structure.
How Will Inflation Accounting Affect Financial Institutions?
Addressing the issue of inflation accounting, Yılmaz noted that discussions regarding its postponement, particularly for banks and financial institutions, are likely to fade from the agenda by 2025. The decision concerning these institutions will be finalized by year’s end, while implementation for SMEs has already been delayed.
Yılmaz also underscored the fiscal challenges posed by public-private partnership (PPP) projects, especially those conducted in foreign currency, emphasizing the necessity for thorough financial evaluations. He confirmed that currently, there’s no initiative to convert these contracts into Turkish Lira.
Key conclusions from Yılmaz’s statements include:
- Cryptocurrency and stock transaction taxes are not immediate concerns.
- The emphasis is on optimizing existing tax provisions.
- Inflation accounting will be deferred for financial institutions.
- Economic evaluations of PPP projects remain critical, with no currency conversion plans.
The government is committed to its savings agenda to curb the budget deficit, ensuring public entities adhere to their financial limits. Yılmaz expressed confidence in Turkey’s growth prospects, supported by declining global interest rates and robust performance from key economic partners like the EU. He reiterated that ongoing dialogues about swap channels and stock market regulations are approached with financial stability at the forefront. Discussions with London about swap arrangements are ongoing, with necessary actions taken to protect the country’s economic interests.