“Switch to Inflation Accounting”

Center Despite the Bank’s lower policy rate, access to finance from the corporate world remains problematic. Nilüfer Çevikel, president of the Turkish Young Entrepreneurs Association (TÜGİAD), said that the credit problem can be overcome with public offerings. Explaining that in addition to this problem, they are also fighting inflation, Çevikel stated that companies have to pay taxes on the money they don’t earn.

THE WORD NEEDS BALANCE

Recalling that inflation accounting, which was last applied in 2004, was taken without preparation and postponed due to common demand, Çevikel said: “It had to be implemented under current conditions. High taxes are paid in an environment where profits are falling. Because of the taxes we paid on money we couldn’t earn, his working capital melted away. We believe that the inflation adjustment should be brought forward to the end of the year, and if this is not possible, the application should be made effective in the first temporary tax period. Expressing that exchange rates, which did not increase as much as inflation, put exporters in trouble in pricing, Çevikel said: “We started to feel this deeply, especially in the textile and clothing sectors. If a balance is not achieved here, the cancellations of orders that have started will increase even more, ”he said.

Purchasing power must be increased.

Saying that employees should not be crushed by inflation, TÜGİAD President Nilüfer Çevikel stated that they expect an increase of around 60 percent by the end of the year. Emphasizing that any increase in the minimum wage without increasing purchasing power and removing conditions that cause inflation, Çevikel noted that the burden of the increase should not be left entirely to the employer.