IN a bid to encourage more Turkish Lira accounts, new taxes have been introduced today (Aug 31).

Tax on TL deposits of up to six months are cut from 15 percent to 5 percent;

Tax on TL accounts held for one year are cut from 12 percent to 3 percent;

Tax on Turkish Lira deposit accounts exceeding one year are reduced from 10 percent to zero;

However tax on foreign currency accounts are to rise:

Foreign currency accounts for up to six months, the tax rises from 18 percent to 20 percent

Foreign currency accounts held for one year, the tax rate rises from 15 percent to 16 percent;

Foreign currenct accounts held for more than one year, tax remains at 13 percent;

The changes will be in effect for three months from August 31.

The changes were announced in the Official Gazette.