Stock and crypto taxes no longer on agenda, says Turkish VP

Vice President Cevdet Yilmaz announced significant changes in Türkiye’s tax policies, stating that stock market and crypto taxes are no longer on their agenda.

Key points

• New tax package: Yilmaz indicated that there are no plans for a new tax package this year. “The stock market tax is not on our agenda. It was discussed for a period and has now fallen off our agenda,” he said. He also mentioned that crypto taxes are similarly not being considered, suggesting that tax policies will not undergo major changes in 2024.
• General tax strategy: He highlighted that upcoming measures regarding general tax rates will focus on narrowing exemptions and exemptions. “We don’t have such a plan this year,” he emphasized, indicating that future tax policies will not involve significant modifications.
• Inflation accounting: Yilmaz addressed uncertainties regarding banks transitioning to inflation accounting in 2025, stating that these will be clarified and decided upon after an evaluation at the end of this year. “After a while, this will fall off Türkiye’s agenda,” he said.
• Support for SMEs: Yilmaz reminded that the implementation for SMEs with revenues under TL50 million has been postponed and indicated that a legal regulation focusing on investments might be necessary. “We are focusing on alternatives to ensure that these processes do not adversely affect ongoing investments,” he stressed.
• Public-Private Partnership (PPP) Projects: Yilmaz commented on the burden that dollar-denominated PPP projects place on the budget, emphasizing that contracts should be assessed not only financially but also economically.

Additional observations

• Inflation and interest rates: “Our goal is to reduce both inflation and interest rates in the medium term,” Yilmaz reiterated, adding that this would have positive effects on Türkiye’s macro balances. He anticipated that the strengthening of the local currency would accompany the decrease in inflation.
• Growth, inflation relationship: Yilmaz defended the compatibility of the 4% growth and 17.5% inflation targets set for 2025 in the Medium-Term Program (OVP). “The decline in inflation increases predictability and improves confidence regarding the future,” he said.
• Swap channels and short-selling ban: Discussing the reopening of swap channels with London, Yilmaz stated this process is being evaluated by relevant units and emphasized the importance of financial stability. He also stated that the relevant units will make decisions regarding the ban on short selling in due time.

Yilmaz’s statements provide crucial insights into Türkiye’s financial and economic situation, potentially serving as a guide for investors. The short- and medium-term goals of economic management could play a critical role in ensuring Türkiye’s economic stability.