Turkey Raises Tax on Some FX Purchases in Pandemic Fight

A man walks in Istanbul, early Sunday, May 24, 2020. (AP Photo/Emrah Gurel)
A man walks in Istanbul, early Sunday, May 24, 2020. (AP Photo/Emrah Gurel)
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Turkey Raises Tax on Some FX Purchases in Pandemic Fight

A man walks in Istanbul, early Sunday, May 24, 2020. (AP Photo/Emrah Gurel)
A man walks in Istanbul, early Sunday, May 24, 2020. (AP Photo/Emrah Gurel)

Turkey hiked the tax on individual foreign currency purchases and the withholding tax on banks’ commercial paper to help it deal with the economic impact of the COVID-19 disease, Bloomberg reported.

The so-called bank and insurance transaction tax rate on individual foreign exchange purchases, which also includes gold, has been raised to 1 percent from 0.2 percent, according to a statement in the Official Gazette on Sunday.

The withholding tax on banks’ commercial papers went up to 15 percent from 10 percent, Bloomberg quoted the statement as saying.

The proceeds will allow the government to give more aid to businesses and citizens hurt by the coronavirus, according to a Treasury official.

The tax on foreign exchange purchases won’t apply to interbank market and credit transactions, purchases by Turkey’s Treasury and Finance Ministry, to exporters or to those paying loans in foreign currencies, Bloomberg said.



Riyadh and Tokyo to Launch Coordination Framework to Boost Cooperation

Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)
Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)
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Riyadh and Tokyo to Launch Coordination Framework to Boost Cooperation

Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)
Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)

Saudi Arabia and Japan are close to unveiling a higher partnership council that will be headed by the countries’ leaderships in line with efforts to build a partnership that bolsters the technical transformation and joint research in clean energy, communications and other areas, revealed Saudi Ambassador to Japan Dr. Ghazi Binzagr.

He told Asharq Al-Awsat that the two countries will soon open a new chapter in their sophisticated strategic partnership.

The new council will be chaired by Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and Japanese Prime Minister Shigeru Ishiba to push forward the Saudi-Japan Vision 2030, he added.

The council will elevate cooperation between the countries and pave the way for broader dialogue and consultations in various fields to bolster political, defense, economic, cultural and sports cooperation, he explained.

The two parties will work on critical technological partnerships that will focus on assessing and developing technologies to benefit from them, Binzagr said. They will also focus on the economy these technologies can create and in turn, the new jobs they will generate.

These jobs can be inside Saudi Arabia or abroad and provide employers with the opportunity to develop the sectors they are specialized in, he added.

Binzagr said Saudi Arabia and Japan will mark 70s years of relations in 2025, coinciding with the launch of Expo 2025 in Osaka in which the Kingdom will have a major presence.

Relations have been based on energy security and trade exchange with Japan’s need for oil. Now, according to Saudi Vision 2030, they can be based on renewable energy and the post-oil phase, remarked the ambassador.

Several opportunities are available in both countries in the cultural, sports and technical fields, he noted.

Both sides agree that improving clean energy and a sustainable environment cannot take place at the expense of a strong economy or quality of life, but through partnership between their countries to influence the global economy, he explained.

"For the next phase, we are keen on consolidating the concept of sustainable partnerships between the two countries in various fields so that this partnership can last for generations,” Binzagr stressed.

“I believe these old partnerships will last for decades and centuries to come,” he remarked.

Moreover, he noted that the oil sector was the cornerstone of the partnership and it will now shift to petrochemicals and the development of the petrochemical industry.