Turkish parliament to debate corporate tax hike in financial sector

Turkish President Tayyip Erdogan addresses members of parliament from his ruling AK Party (AKP) during a meeting at the Turkish parliament in Ankara, Turkey, January 15, 2019. REUTERS/Umit Bektas

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ANKARA, March 28 (Reuters) – Turkey’s parliament will start debate this week on a bill that would raise corporate tax on financial sector firms from 20 percent to 25 percent and possible prison terms for damage to the reputation of companies in the media.

President Tayyip Erdogan’s ruling AK Party introduced the 39-article bill to parliament on Friday evening and debate on it is expected to begin in the Assembly’s Planning and Budget Committee on Tuesday.

The planned increase in the tax rate, applicable from 2022, would be imposed on banks, leasing companies, wealth management companies and insurance companies.

The bill also contains clauses expanding measures to protect the reputation of banks to include companies that have a similar business model.

The law provides for a custodial sentence of one to three years, or even a fine, for those found guilty of disseminating baseless information that undermines confidence in the industry or damages its financial structure.

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Reporting by Nevzat Devranoglu; Written by Daren Butler; Editing by Jonathan Spicer

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