Turkey has shelved plans to impose taxes on profits from stock trading and cryptocurrency investments, according to statements by Vice President Cevdet Yılmaz published on Bloomberg. Speaking to Bloomberg today, Yılmaz said that an additional tax package is not on the agenda for 2024, easing concerns among investors.

“We don’t have a share tax on the agenda. It has been discussed before and has been dropped from our agenda,” he said. Instead, the government will focus on narrowing existing tax breaks as part of its broader economic strategy.

Earlier this year, the idea of taxing stock market profits sparked a backlash, particularly in the retail investment sector, where trading is used as a hedge against rising inflation. Following public outcry, Treasury and Finance Minister Mehmet Şimşek said in June that the proposal would be reconsidered at a later date.

Yilmaz’s comments are likely to reassure investors as trading volumes on Turkey’s main stock exchange have fallen significantly, from $4 billion at the start of the year to $2.3 billion last month, according to Bloomberg data.

Restructuring Turkey’s public finances is a key priority for the government, which aims to reduce inflation from the current 52% to single digits within three years. The country’s budget has been hit hard by the cost of responding to devastating earthquakes and pre-election spending.

*This is not investment advice.