Evaluation of BITT and Withholding Tax Steps from Experts

Evaluation of BITT and Withholding Tax Steps from Experts An evaluation of BITT and withholding tax steps came from the experts. Speaking to Bloomberg HT, experts made evaluations about the new arrangement announced today in the morning. New regulations were announced on the last day of September. In the statement made in the morning hours, while the taxes to be paid to Turkish Lira deposits were reduced according to their terms, BITT applied in foreign exchange transactions was reduced from 1 percent to 2 per thousand. The tax cut on the interest yield of TL deposits has been reduced. However, the rate was zeroed in deposit accounts with a maturity of more than 1 year. Speaking to Bloomberg HT, experts commented on these new regulations announced in the morning. Partner KPMG in Turkey Emrah Akin, the assessment on the subject gave the following expressions: “Years ago, we left the practice of collecting taxes on foreign exchange transactions. It returned in the past period and was increased to 1 percent in May. However, this had an effect as follows; Instead of restricting people to buy foreign currency, it started to prevent people from spoiling their foreign currency. Because the cost of buying increases after cashing, this has created a cross-effect. The removal of 2 per thousand of our hearts, liberalization of foreign exchange buying and selling, but even this decline is a very important step. Of course it will create some dynamism in the foreign exchange market. The main activity is the reduction approach in the withholding rates made on the deposit interest. This is valid for the deposit interest rates that are fixed until the end of the year as of today. Not valid for foreign currency deposit accounts. From this date, we switched to a new interest rate regime that is valid until the end of the year for the deposit accounts you have linked until the end of the year. I guess it will cause an increase in TL deposit holding rates. In yesterday's YEP, Mr. Minister did not emphasize foreign exchange, but we can say that these two steps are aimed at controlling the current situation of foreign exchange in some way. "   Positive View on the Discount in BITT Meksa Investment Deputy General Manager Figen Özavcı Gümülcineli stated that she found the discount applied in BITT positive and continued her explanations as follows: “Even though it is a bit delayed, it is actually happening. The arrival of these steps is positive for the markets. The move on interest rates was a surprise. It was an expected step, but it is expected to continue. Secondly, the decision taken regarding the foreign currency is also very critical, especially the withholding steps taken on deposits will relieve banks to some extent. The step in the Asset Ratio is the same, the fact that there is a tax on the foreign currency side caused us trouble in the seller part on the foreign currency side. We had a time when the seller, who found the levels attractive and wanted to sell, refrained from tax. Among these decisions, I found the most positive decision. It will increase the volume a little on the dollar side. It comes one after the other and I think the continuation will come. As these steps come, the seller will be back with the tax there. "   "A Right Decision" Stating that the announced new regulations are quite correct, Erten & Erten Consulting Founding Partner Mehmet Erten said: “I think it was a very good decision. We had to restore credibility to the Turkish lira and ensure that the share in the legislation changes, albeit slowly, due to the Turkish lira. In addition to providing real return by raising interest again, lowering the withholding tax has been tried and succeeded before, it was the right decision to reduce the net interest yield and deposit interest a little more in this sense and limit the pressure on interest. The upward shift in deposits and the banks' pulling up on individual deposits will be partly dependent on the course of interest in loan demand. There is no hesitation yet, but there is some slowdown. The need for deposits drives the interest pressure upward. This movement will cause it to slow down even without substitution. "