Financial and business news from Bulgaria

Chains push president to veto price cap

The Association for Modern Trade, which has the largest chains, insists President Rumen Radev to veto the ceiling of prices for goods and services.
In their opinion they write:

Last night the Bulgarian Parliament adopted the Law on Measures and Actions during the State of Emergency, announced by a decision of the National Assembly of 13 March 2020. “.

The law introduces a price cap for goods and services. According to it, 'all operators are obliged to provide the public with the goods and services offered at prices equal to the arithmetic average prices of the goods and services offered by them during the last three months' prior to the introduction of a state of emergency. For violation of the provision “guilty persons are subject to a penalty amounting to 5% of the turnover” for the previous year, and on the individuals representing them - a fine of 20 000 to 100 000 BGN.

The members of the Association for Modern Trade make a significant contribution to the low prices in Bulgaria and even in conditions of emergency, manage to maintain them despite pressure from more and more producers.

The association states that the adopted provisions represent a return from a market to a centralized economy. “They are the wrong tool to limit prices and will lead not to lower prices, but to severe consequences for the Bulgarian economy - deficits of goods and services, chaos, corruption, bankruptcies, speculation, an increase in the gray sector and a decline in revenues in the state budget just when they are needed most. free competition can guarantee low prices. Countless examples around the world and in our country are proof of this.”

Chains appeal to all authorities not to make hasty decisions, to coordinate them with stakeholders and not to send further panic into the already challenging situation.

Insist that the president veto the text to impose a cap on prices. “If, however, the law comes into force, we appeal to the National Assembly to urgently repeal the texts in question,” is their call.