Call to Mehmet Şimşek from Yeni Şafak

A report published in the newspaper Yeni Şafak has proposed taxing individual foreign currency gains. The report argues that the purpose of the implementation is not to increase revenue but to reduce dollarization, while claiming that the current system increases pressure on the Turkish Lira.

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The Yeni Şafak newspaper, which is part of the Albayrak Group known for its proximity to the government, claimed in its front-page story today titled "Taxing foreign currency protects the economy and the TL" that while companies pay taxes on gains from foreign currency transactions, individual investors' gains from foreign currency are not taxed.

The report alleged that the current practice accelerates the depreciation of the Turkish Lira, creates pressure on inflation, and makes interest rate cuts more difficult.

ATTENTION DRAWN TO THE SOURCE OF FOREIGN CURRENCY DEMAND

The report stated that the appreciation of the dollar and euro in recent years has increased import costs, and included the view that a significant portion of the demand for foreign currency comes from individual investors.

While evaluating exchange rate increases and their effects on inflation, individual savings preferences were highlighted as one of the reasons for economic developments.

REDUCING DOLLARIZATION CITED AS THE GOAL

In Yeni Şafak's report, it was argued that the primary goal of applying a 25 percent tax on foreign currency gains is not to increase budget revenues, but to reduce the trend of dollarization in the economy.

The report also included claims that the aforementioned implementation could contribute to the Central Bank of the Republic of Turkey's interest rate reduction process and limit volatility in exchange rate movements.

DEBATES ON ECONOMIC POLICIES CONTINUE

The report assessed that the lack of taxation on foreign currency gains creates "tax injustice," and stated that debates regarding the practices of economic management are ongoing.

Furthermore, the report also included assessments that criticisms directed at Treasury and Finance Minister Mehmet Şimşek and the economic program have increased recently.

News Source: 12punto