Market News

(Bloomberg) -- Turkey isn’t planning to tax profits on stocks and cryptocurrency, Treasury and Finance Minister Mehmet Simsek said.

The government is considering a “very limited” transaction tax on the assets, Simsek told Bloomberg in Ankara, without specifying its potential size.

Turkey’s benchmark Borsa Istanbul 100 Index reversed losses on the news to rise as much as as 0.7% on Wednesday, before paring gains to 0.1% as of 5:18 p.m. in Istanbul.

“Our aim is to leave no area untaxed in order to provide justice and effectiveness in taxation,” Simsek said.

“The tax on stocks trading, albeit very limited, could rather lead to inefficiency in the market, while increasing commissions and fees,” said Ata Portfoy CEO Mehmet Gerz. “It’s rather a step to benefit from strong trading volumes.”

Bloomberg reported on Tuesday that authorities had discussed taxing proceeds from stocks and cryptocurrency. The Turkish stock market fell on the story.

Simsek is overseeing a push for fiscal tightening to curb inflation that accelerated above 75% last month. He’s already unveiled public spending cuts and plans for a minimum corporate tax rate.

--With assistance from Tugce Ozsoy.

(Adds comment in fifth paragraph, updates market data.)