Turkey to ban cash payments for expensive purchases

The Turkish Tax Administration has prepared amendments introducing a limit on the maximum amount of cash payments — 7,000 Turkish lira (about $205 at the current exchange rate), News.Az reports citing Gazeta.Ru .

If the changes are adopted, individuals and companies will be required to pay for purchases over this threshold by non-cash means — by cards, transfers or through official intermediaries.

“The offender will have to pay at least 5,000 lira ($146) or 10% of the purchase amount. But the fine will not be charged if the consumer notifies the tax service within 5 days,” the document says.

The authorities note the high share of shadow transactions that are not controlled by fiscal authorities. The limit on cash payments will increase the transparency of financial relations and optimize tax collection.

Previously, the Association of Tour Operators of Russia (ATOR) assessed the possible impact of the new Turkish law on the limit on cash payments. Vice President of ATOR Artur Muradyan noted that the innovation could reduce purchases by Russians, but is unlikely to have a significant impact on the tourist flow.

News.Az