GÜLER CALLS FOR REEVALUATION OF INFLATION ACCOUNTING BY ECONOMIC MANAGEMENT

In a recent statement, ETO President Metin Güler highlighted concerns regarding inflation accounting, asserting that businesses will be forced to pay additional taxes based on illusory profits that do not reflect their actual financial status. He called for the economic management to reassess this issue.

Güler emphasized that the application of inflation adjustments in taxation leads to businesses being taxed on profits that exist only on paper, creating undue burdens for traders, artisans, and industrialists. He pointed out that complaints about inflation accounting have been consistently raised by ETO members.

Monitoring the Inflation Accounting Issue

He noted that the inflation accounting issue is on the agenda of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and its affiliated chambers. Güler reassured that Eskişehir Chamber of Commerce is actively monitoring this problem and expressed hope that necessary measures will be taken regarding this significant challenge for the private sector.

Increased Debt Burden for Businesses

Güler stressed that the price increases resulting from high inflation might appear as profits on balance sheets, but in reality, such profits do not exist. He warned that businesses would have to incur more debt to meet the tax liabilities arising from inflation accounting. He concluded by reiterating the need for the economic management to revisit the inflation accounting issue.