New bill proposes massive hike to departure tax, addresses debt restructuring in Turkey

A new omnibus bill submitted to Turkish parliament by the ruling Justice and Development Party (AKP) introduces a 330 percent price hike to departure tax for Turkish nationals travelling abroad and debt restructuring for companies, independent news site Diken reported on Monday.

Accordingly, the fee paid at customs by Turkish nationals to leave the country will increase to 50 lira ($ 8.73) from 15 lira ($ 2.62) , AKP Group Deputy Chairman Mehmet Muş said.

The proposed law also gives qualifying companies two years to apply for debt-restructuring, he said.

The omnibus bill also sees the extension of the cash repatriation law (varlık barışı) until Dec. 31.

The law allows for private and corporate entities to be exempt from taxes as well as inquiry on the source of their money entering the country from abroad.

The bill would effectively extended this regulation for a second time.

Muş said the omnibus bill suggested changes to the Central Bank law including a proposed 10 percent allocation to the reserve fund compared to the 20 percent allocated currently according to Article 60 of the law.

Turkish President Recep Tayyip Erdoğan on Saturday sacked the governor of the central bank for declining to obey the government’s repeated instructions for rate cuts.

The omnibus bill will be reviewed by the budget and planning commission before being discussed at the general assembly of parliament.