Turkey Ruling Party Plans Tax Increases on Banks and Companies

Turkey is planning to increase taxes on banks and corporations as it seeks to offset some of the burden of a ballooning budget deficit that was aggravated by election pledges and devastating earthquakes.

A bill submitted by President Recep Tayyip Erdogan’s ruling AK Party and viewed by Bloomberg proposes an increase in the corporate tax rate to 25%, up from 20%. The corporate tax rate for banks, insurers, brokerages, pension firms and electronic payment firms would be raised to 30% from 25%, according to the draft.