Turkish government considers tax hike on lira deposits: Report
File photo shows Turkish Treasury and Finance Ministry's headquarters in Ankara, Türkiye, alongside its official logo. (AA Photo)
Türkiye’s Treasury and Finance Ministry is considering adjusting the tax on Turkish lira deposits and money market funds, currently ranging from 5% to 10%, in the coming days to help curb the budget deficit, business-focused Bloomberg reported on Tuesday.
The Turkish government is poised to reassess deposit rates on Jan. 31, with Bloomberg reporting that adjustments—including potential tax hikes—are still under discussion. The scale of the increase is still being evaluated, according to anonymous ministry officials.
Current taxes on Turkish lira deposits
Uncertainty lingers over whether any increase in the withholding tax, currently levied at 5% to 10% depending on deposit terms, would apply uniformly across all account types.
A tax hike was already implemented on deposits in November, coinciding with the introduction of a 10% levy on money market funds.
Higher taxes on lira savings could erode their appeal, incentivizing a shift toward foreign currencies like the U.S. dollar or domestic equities.
Current taxes on Turkish lira deposits are as follows:
| Deposit maturity (for accounts opened/renewed after Nov. 1, 2024) | Tax (%) |
|---|---|
| Up to 6 months | 10 |
| Up to 1 year | 7.5 |
| 1+ year | 5 |
