Gov't to rethink taxes that hinder Turkey's competitive edge

Speaking at the Fight Against Laundering of Crime Revenues and Financing of Terrorism workshop held in Istanbul, Finance Minister Naci Ağbal announced that they are conducting projects on market depth under the auspices of work on the Istanbul Finance Center that could remove some taxes that hinder Turkey's competitive presence among other financial centers, adding that the Ministry of Finance is also working on regulations to bring new instruments to global financial markets.

Informing that the measures taken regarding the economy effect 0.74 percent of the national revenue, Ağbal said, "The measures we will take in public finance will be reflected on the supply side. There is a fiscal discipline in Turkey and it will continue. The measures we have taken are temporary and under the influence of measures, the rate will fall to 0.38 percent next year and down to 0.30 percent in 2019." Ağbal also pointed out that the measures and incentives have started to show their effects on the economy.

Stressing that 203,000 firms have gained benefits totaling TL 146.4 billion ($40.78 billion) from support provided by the Credit Guarantee Fund (CGF), Ağbal said, "I believe that banks are prudent regarding CGF loans. Expansionary public finance bears fruit and we keep track of the numbers. We have clearly observe the upward momentum in the economy."

With regards to the project to lift taxes, currently in progress in order to develop the Istanbul Finance Center, Ağbal highlighted that a comprehensive legal regulation is necessary and the Ministry of Finance is committed to ensuring that coordinated efforts are made for that regulation.

Announcing that the Ministry could remove some taxes for market depth, Ağbal stated that there are regulations for bringing new instruments to the financial markets, adding that the draft law regarding the Istanbul Financial Center will be submitted to Parliament next week.

Noting that the Ministry has received recommendations, legal regulation drafts and opinions from the Capital Markets Board (CMB), the Banks' Association of Turkey, the under secretariat of the Treasury, the Ministry of Development and non-governmental organizations (NGOs) from the financial market, the minister said that a very comprehensive package is being devised, stressing that it includes the lifting or reduction of taxes paid during financial transactions.

"Of course, we will work diligently on fiscal discipline to reduce taxes and lower other public costs and we will not refrain from lifting taxes that constitute potential obstacles for our competitive edge among other countries, to develop and deepen the financial markets," the minister noted.