Turkey tax hike on finance sector would raise 10 billion liras for budget

Turkey’s plans to increase the corporation tax for the finance industry to 25 percent from 20 percent for next year will add 10 billion liras ($690 million) to budget revenue, Reuters reported citing an impact analysis by the ruling government alliance.

The corporate tax rate has been tentatively set at 23 percent for 2022, Reuters said on Wednesday. That increase will raise an additional 3 billion liras, the analysis showed.

Turkey is seeking to raise revenue in the budget to finance spending, subsidies and to encourage growth in the manufacturing industry and exports.

The government’s spending plans and economic programme are being potentially undermined by soaring inflation and losses for the lira against major currencies. Consumer price inflation hit a two-decade high of 54.4 percent in February. The lira lost 44 percent of its value against the dollar last year and has fallen by 10 percent in 2022.

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