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Turkey is set to impose a new 0.03% transaction tax on cryptocurrencies in an overall move for comprehensive fiscal reform in the country, geared toward reeling its budget shortfalls after being hit by heavy, early 2023 destructive earthquakes. The move for the new tax underscores a strategic pivot in financial regulation towards burgeoning crypto investments now gaining popularity among Turkish investors as a defense against falling lira and inflation.
Bloomberg says that the anticipated levy could generate 3.7 billion liras in annual revenue and is the lifeline national stress finances need. It is such a surprise move from the earlier stand by the government since it had informed that it did not intend to levied taxes on gains on digital and stocks. Therefore, with a parliamentary majority, this administration of President Recep Tayyip Erdogan can apply those special transaction taxes under the headline of full-fledged financial discipline.
All this can be said in the context of the declared aim of proper equity and effectiveness in taxation policies. However, past experiences for imposing transaction taxes came out by experiencing considerable resistance, so it is assumed it serves as a severe political obstacle ahead of the incumbent administration while moving with these must-do legislative endeavors.
