President Yalçın: “Our industrialists are not expecting obstacles, but support.”

Kayseri OSB Chairman Mehmet Yalçın made a statement regarding the implementation of inflation accounting and its implications.
Chairman Mehmet Yalçın reacted to the inflation accounting practice, stating, “During a time when our industrialists are struggling to produce and export, inflation accounting will yield nothing but a financial burden. Our industrialists expect not only the protection of existing investments but also new steps to be taken to prevent stagnation in exports and to receive support.”
Chairman Yalçın noted that the high inflation experienced in Turkey in recent years continues to negatively affect real markets. Yalçın said, “High inflation is among the foremost economic problems in our country. The inflation problem facing society should be resolved through financial and political policies. The inflation burden on our industrialists and taxpayers should be alleviated through some tax regulations.”
Kayseri OSB Chairman Mehmet Yalçın continued his statement as follows:
“Inflation adjustment is a theoretical accounting practice conducted during periods of high inflation to make companies’ financial statements more accurate. Implementing inflation adjustment every three months requires companies to prepare balance sheets and income statements quarterly. This process is quite challenging for companies.
As a result of our work with the industrialists operating in Kayseri Organized Industrial Zone, it has been observed that there are disruptions regarding the taxation of inflation adjustment differences. The implementation can lead to a situation where firms with strong equity but low non-monetary assets—such as stocks, subsidiaries, tangible fixed assets, and intangible fixed assets—end up paying less tax than they should due to increased expenses. Conversely, businesses with weak equity but high non-monetary assets, which finance themselves through borrowing, may be forced to pay significantly more tax than required due to increased income.
If inflation adjustment is applied in this manner, it will create a substantial tax burden for small and medium-sized enterprises. It is clear that this tax burden will lead to issues with equity and financing.
Of course, the necessity to close our country’s budget deficit is undeniable. However, while addressing this deficit, our industrialists and small and medium-sized enterprises should not be left under this heavy burden. Tax justice must be ensured. We believe that this application, which seriously undermines tax fairness, should not be implemented during temporary tax periods.
Inflation adjustment should be applied not during temporary tax periods but on an annual basis. The shortcomings in the legislation and the errors in implementation must also be corrected by the end of the year.