عربي English Türkçe اردو فارسى
Logo
Latest News
Business

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)
TT
TT

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.

Most Viewed

 
 
Business

Three Saudi-Yemeni Companies Established in Energy, Telecom to Support Yemen's Reconstruction

The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
TT
TT

Three Saudi-Yemeni Companies Established in Energy, Telecom to Support Yemen's Reconstruction

The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)

The Saudi-Yemeni Business Council, part of the Federation of Saudi Chambers, announced six initiatives to boost trade and support Yemen’s economic development at a meeting in Makkah, Saudi Arabia.
Over 300 Saudi and Yemeni investors attended, agreeing to establish three companies to help rebuild Yemen and improve its infrastructure.
The initiatives include upgrading border crossings to improve logistics and increase trade, currently valued at 6.3 billion riyals ($1.6 billion). Yemen’s exports to Saudi Arabia, worth only 655 million riyals ($174.6 million), highlight untapped potential in mining, agriculture, livestock, and fisheries.
Key recommendations to enhance trade and support Yemen’s economic recovery include setting up quarantine facilities for Yemeni livestock and agricultural products to increase exports, as well as building smart food cities near border areas to improve food security and sustainable cooperation.
The Council urged action to address banking challenges faced by traders, suggesting reforms in Yemen’s financial sector and stronger ties with Saudi banks. It also proposed creating a club for Yemeni investors in Saudi Arabia to encourage joint projects and partnerships.
Three new Saudi-Yemeni companies will be established. One will invest $100 million in solar energy to provide sustainable electricity in Yemen. Another will focus on boosting telecommunications via Starlink satellite services. The third will organize events to promote Saudi products and support Yemen’s reconstruction.
Speaking to Asharq Al-Awsat, Council President Dr. Abdullah bin Mahfouz emphasized the private sector’s critical role in stabilizing Yemen’s economy and society through investments that support development, create jobs, improve infrastructure, and promote small and medium-sized enterprises (SMEs).
He stressed the importance of empowering Yemeni entrepreneurs and securing funding for reconstruction projects, encouraging public-private partnerships to execute large-scale initiatives under the Build-Operate-Transfer (BOT) model.
The Makkah meeting ended with agreements between Saudi and Yemeni companies to develop key sectors such as energy, agriculture, and infrastructure.
Streamlined customs, improved logistics, and upgraded Yemeni ports and airports were also highlighted as priorities to facilitate trade.
Yemeni delegation leader Abdulmajid al-Saadi, praised Saudi Arabia’s new investment law, noting Yemeni investments in the Kingdom have reached 18 billion riyals ($4.8 billion), ranking third among foreign investors.