- Turkey shelves stock market and cryptocurrency tax plans amid public backlash concerns.
- Trading volume on Turkey’s stock exchange dropped due to initial fear of new tax proposals.
- Turkey ranks as the 4th largest in the crypto market, recording $170B in trading volume.
Cevdet Yilmaz, the Vice President of Turkey, has stated the government is not planning to introduce a tax on profits from stock trading or crypto assets this year.
Speaking to Bloomberg, Yilmaz clarified that the initial tax discussions have been dropped from the government’s agenda, due to earlier public backlash and a re-evaluation of the proposals. He also stressed that the focus will be on reducing tax breaks rather than creating new fees on retail investments.
Stock Market Tax Proposals Reconsidered
Earlier this year, the Turkish government had thought about implementing taxes on gains from stock market profits. These proposals, which were seen as a safeguard against rising inflation, had put pressure on the stock market.
Treasury and Finance Minister Mehmet Simsek acknowledged these concerns in June, stating that the plan would be re-evaluated. The government has since decided against this tax, easing investors’ worries.
Read also: Turkey Unveils Major Tax Overhaul, Eyes New Crypto Regulations
Even so, according to the report, the trading volume for Turkey’s main stock exchange has decreased lately, dropping from $4 billion earlier this year to $2.3 billion in the past month.
This drop is thought to be due to the initial fear surrounding the potential new tax on stock market profits. Yilmaz emphasized that the government’s main goals are still improving public spending and managing national income.
No New Taxes on Cryptocurrency Gains Either
Besides delaying plans for the stock market tax, Yilmaz confirmed that Turkey has no plans to introduce new taxes on crypto asset gains. Even without a specific tax, Turkey has remained active in regulating the crypto market. The country ranks fourth-largest in the crypto market, with a trading volume of roughly $170 billion.
Read aslo: Turkey’s Crypto Scene Booms: 47 License Applications
Earlier this year, Turkey saw a surge in cryptocurrency license applications, showing the growing interest in the sector. The Turkish Capital Markets Board (CMB) revealed that 47 crypto firms had applied for licenses under new regulations, highlighting the country’s growing role in the global crypto economy.
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