The requirement to declare prices for some groups of goods needs revision

27/ 10/ 2020

Listen to online Stop   For five months now, businesses have been obliged to declare an increase in retail prices for goods of significant social significance and anti-epidemic goods at the request of the CMU Resolution №341. During this time, the EBA member companies have gone through the declaration process and would like to make suggestions for its improvement based on their experience. Thus, the European Business Association proposes to consider three key changes to Resolution №341: First, it is necessary to reduce the time of declaring an increase in retail prices, as they are directly affected by wholesale prices. For example, if the suppliers prices increase by 15%, such goods will be able to appear in retail only 30 days after the declaration. Given that the timing of changes in prices by the supplier is not regulated by law, the retailer cannot properly respond to changes in the wholesale price. We also note that certain products have a short shelf life. Secondly, we propose to exclude from the Resolution the list of goods that have significant social significance. After all, the prices for goods on this list fluctuate within the range of five percent according to business representatives and information on the level of average prices provided on a weekly basis by the Mineconomy. Therefore, it is impractical to continue to declare such goods as considered by experts. At the same time, there can be an increase of more than 5% because the list of goods of significant social significance contains categories without clarification. For example, flour, butter, mineral water, poultry, etc. are subject to a declaration with higher added value regardless of whether they are domestic or imported, or of industrial or farm production. Third, it is necessary to exclude certain items from the list of anti-epidemic goods used to prevent the spread of COVID-19. Thus, the list includes some disinfectants and personal protective equipment that are used mostly for household purposes, not in medicine. It will be recalled that during the quarantine the Government introduced state regulation of prices for goods of significant social significance and anti-epidemic goods. For example, from May 18, companies are required to declare changes in retail prices if they increase by five percent or more. Declaring price changes is carried out electronically by submitting information to the State Service for Food Safety and Consumer Protection. The European Business Association addressed the Minister for Development of Economy, Trade and Agriculture of Ukraine with a request to initiate the introduction of these amendments to Resolution №341. We hope that our appeal will be considered!   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

For five months now, businesses have been obliged to declare an increase in retail prices for goods of significant social significance and anti-epidemic goods at the request of the CMU Resolution №341. During this time, the EBA member companies have gone through the declaration process and would like to make suggestions for its improvement based on their experience.

Thus, the European Business Association proposes to consider three key changes to Resolution №341:

First, it is necessary to reduce the time of declaring an increase in retail prices, as they are directly affected by wholesale prices. For example, if the supplier’s prices increase by 15%, such goods will be able to appear in retail only 30 days after the declaration. Given that the timing of changes in prices by the supplier is not regulated by law, the retailer cannot properly respond to changes in the wholesale price. We also note that certain products have a short shelf life.

Secondly, we propose to exclude from the Resolution the list of goods that have significant social significance. After all, the prices for goods on this list fluctuate within the range of five percent according to business representatives and information on the level of average prices provided on a weekly basis by the Mineconomy. Therefore, it is impractical to continue to declare such goods as considered by experts. At the same time, there can be an increase of more than 5% because the list of goods of significant social significance contains categories without clarification. For example, flour, butter, mineral water, poultry, etc. are subject to a declaration with higher added value regardless of whether they are domestic or imported, or of industrial or farm production.

Third, it is necessary to exclude certain items from the list of anti-epidemic goods used to prevent the spread of COVID-19. Thus, the list includes some disinfectants and personal protective equipment that are used mostly for household purposes, not in medicine.

It will be recalled that during the quarantine the Government introduced state regulation of prices for goods of significant social significance and anti-epidemic goods. For example, from May 18, companies are required to declare changes in retail prices if they increase by five percent or more. Declaring price changes is carried out electronically by submitting information to the State Service for Food Safety and Consumer Protection.

The European Business Association addressed the Minister for Development of Economy, Trade and Agriculture of Ukraine with a request to initiate the introduction of these amendments to Resolution №341. We hope that our appeal will be considered!

Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.