Turkey to Soften Inflation Accounting Rule to Shield Investments

The Turkish government plans to ease inflation accounting rules by exempting capital expenditures from calculations, according to officials familiar with the matter.

Current inflation accounting rules have weighed on companies’ financial results, prompting higher tax payments in some cases. The current rules in place could discourage corporate investments in the government’s view, the officials said, asking not to be named because they are not authorized to speak on the matter. The amendments could be submitted to parliament in the coming days, they said.