Turkey to Introduce 0.03% Transaction Tax on Cryptocurrency Trading

cryptonews.com:

Turkey is set to implement a major fiscal overhaul that includes a 0.03% transaction tax on cryptocurrency trading.

The new taxation addresses the country’s budget deficit, exacerbated by the 2023 earthquakes. The proposed tax reforms are expected to generate substantial revenue and mark the largest change to Turkey’s tax system in decades.

According to Bloomberg , this tax could yield approximately 3.7 billion TRY annually, approximately $113 million, directly boosting the nation’s economy amid challenging fiscal circumstances.

“The ministry is considering a 0.03% transaction tax on crypto trading, which has become popular among retail Turkish investors seeking a hedge against lira weakness and rampant inflation,” the Bloomberg report noted. “The move would bring in 3.7 billion liras a year, according to official projections.”

The broader tax reform seeks to generate 226 billion liras ($7 billion), equivalent to roughly 0.7% of Turkey’s gross domestic product. These measures are claimed to be critical for reinvigorating the nation’s economic recovery following the devastating earthquakes.

Despite previously denying plans to tax crypto and stock gains, the Turkish government is now shifting its stance to include targeted transaction taxes.