The Turkish economy will be mobilized with the new cash repatriation scheme which is expected to draw huge amount of money although the government does not target a specific amount, Finance Minister Naci Ağbal has said, according to a report by state-run Anadolu Agency.
“We can say that the cash repatriation [law] will bring a significant mobilization to the economy in a few months. We have been expecting a good amount,” he told reporters at a workshop on preventing crime revenues and terrorism financing, organized by the Financial Crime Investigation Board (MASAK) and the Turkish Banks Association (TBB) on May 11.
“We do not target a specific amount [of money brought into the country] regarding the cash repatriation scheme,” he added, recalling a similar scheme that was put into effect in 2016 and extended to June 30, 2017.
Ağbal pointed that Turkish individuals who hold assets abroad are still worried because most of the countries are involved in automatic exchange of information of assets and taxes scheme that will be effective in the near future.
Since there was no liability of tax in the previous scheme in 2016-2017, the exact amount of assets brought into Turkey is not known. But it is estimated to be between $2-5 billion.
Assets worth 69.8 billion liras were declared but only 10.5 billion liras were brought in Turkey with a tax of 2 percent within the context of a similar scheme in 2013.
The latest cash repatriation law was approved in parliament on May 9. According to the law, those who bring in assets until July 31 will not pay any taxes, whereas a tax of 2 percent will be charged afterwards.