Turkey Plans to Raise Tax on Lira Deposits to Cut Budget Deficit

Turkey is planning to increase the tax on lira deposits and money market funds in coming days, as it seeks to narrow a budget deficit estimated at around 5% of GDP for last year.

The extent of the raise is still under consideration, people with direct knowledge of the matter said, declining to be identified as discussions are private. It wasn’t clear if an increase in the withholding tax rate would apply to all deposits, currently ranging 5% to 10%.