Türkiye has scrapped its plans to introduce taxes on gains from stock trading and cryptocurrency transactions, Vice President Cevdet Yılmaz revealed on Monday. The proposal, which had been under consideration earlier this year, has now been dropped as part of a broader effort to stabilize the country’s economy without creating additional strain on the financial markets.
“We no longer have a tax on stocks in our plans,” Yılmaz said during an interview, adding that while it had been discussed, the idea has since been taken off the table. The decision is likely to ease investor worries, especially following an earlier drop in trading volumes after initial talks of a possible tax. The country's stock exchange has seen a decline in activity, with trading volume decreasing to $2.3 billion in the past month from over $4 billion earlier in the year.
The government’s current focus is on reducing inflation, which is hovering at around 52%, with a target of bringing it down to single digits within the next three years. Instead of introducing new taxes, officials are now concentrating on narrowing tax exemptions to improve public finances. Yılmaz stressed the importance of maintaining a balance between economic growth and inflation control, explaining that a strategy based on investment, production, and export-driven growth would be less inflationary compared to a consumption-driven model.
In addition, Yılmaz discussed offshore swap regulations that limit the availability of Turkish lira abroad, indicating that these restrictions will be eased when market conditions allow. Though the government has been exploring options to reopen swap channels, no major developments have been announced yet.
Despite the current economic challenges, Yılmaz pointed to a significant improvement in public spending as a percentage of national income and expressed optimism that as inflation continues to decline, concerns over the Turkish lira's value will naturally subside. He also mentioned that the government is reviewing inflation accounting and its impact on investments, with decisions expected on how it will be applied next year.
By shelving the stock and crypto tax proposal, Türkiye is aiming to provide a sense of stability to its financial markets while focusing on broader economic reforms designed to address inflation and strengthen the country’s fiscal position.
