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04 March 2020
ECONOMY

Turkey customs taxes to be collected by government banks only

Policymakers have criticised private lenders for failing to boost credit at the same pace as state lenders

The change comes as Turkey is pressing banks to focus on expanding credit while cutting down other sources of revenue/Bloomberg

by Bloomberg

Turkey is working on a new regulation to allow only state banks to collect customs levies, which makes up about a fifth of the central government’s tax income.

The new measure will come into force on 12 March 2020. The change comes as Turkey is pressing banks to focus on expanding credit while cutting down other sources of revenue. Authorities have recently lowered some of the fees lenders earn on transactions, leaving banks with only a handful of commissions they can charge clients.

Before the push for lower charges began, the nation’s anti-trust authorities started a preliminary probe into more than 20 banks to determine whether they violated competition law in offering deposit, credit, foreign-exchange and brokerage services to clients.

According to the Trade Ministry, customs administrations collected TRL 11.6 billion ($1.9 billion) in taxes out of a total of TRL 67.4 billion the government collected in January 2020.

 


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