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ANKARA: The Turkish parliament will start debating a draft law this week under which the corporate tax imposed on financial sector companies would rise to 25% from 20%, and possible prison sentences for harming firms’ reputations in the media.

President Tayyip Erdogan’s ruling AK Party presented the 39-article bill to parliament on Friday evening and debate on it is scheduled to begin in the assembly’s planning and budget commission on Tuesday.

The planned hike in the tax rate, applicable from 2022, would be imposed on banks, financial leasing companies, asset management firms and insurance companies.

Pakistan, Turkey agree to enhance trade and defence ties

The bill also contains clauses broadening measures aimed at protecting the reputations of banks to include companies which have a similar business models.

The legislation imposes a custodial sentence of one to three years, or a fine, on those found guilty of spreading baseless news which shakes confidence in the sector or harms its financial structure.

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